Business Startup Tools2 min check

VAT Registration Checker

Find out whether you must register for VAT (UK threshold £90,000), or whether voluntary registration could help your business.

Short answer

You must register for VAT once your rolling 12-month UK taxable turnover exceeds £90,000 (2024/25 threshold) — within 30 days. You can register voluntarily below that, which is worth doing if your customers are VAT-registered businesses (you reclaim input VAT) but harmful if they're consumers (your prices effectively go up 20%).

Step 1 of 20%

How it works

The checker takes your turnover, customer mix (B2B vs B2C) and input VAT spend and recommends register / wait / consider Flat Rate Scheme (16.5% for most service firms with low input VAT).

Worked example

B2B agency turning over £75k with £8k input VAT: voluntary registration recovers £1,600/year and looks more credible to enterprise buyers. B2C plumber on £75k: stay unregistered — registering forces a 20% price rise.

Who should use this

•Growing businesses near the threshold
•B2B service firms
•E-commerce sellers approaching £90k
•Contractors checking Flat Rate Scheme suitability

Common mistakes

×Missing the 30-day registration deadline (penalties + backdated VAT)
×Using Flat Rate Scheme when input VAT exceeds the flat rate saving
×Forgetting Making Tax Digital — quarterly returns via approved software

Frequently asked questions

What's Flat Rate Scheme?▾

Pay a fixed % of gross turnover (e.g. 14.5% for IT consultancy) instead of standard VAT accounting. Simpler but loses input VAT recovery.

Can I deregister?▾

Yes if turnover drops below £88,000 — but only after 12 months registered.

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