Overview
A business must monitor taxable turnover on a rolling basis, not only at the financial year end. Registration can also be required where a business expects to exceed the threshold in a short future period or where special rules apply to overseas businesses and Northern Ireland transactions.
Who this applies to
Sole traders, partnerships, companies and overseas businesses making taxable supplies.
Key points
- Use taxable turnover, excluding genuinely exempt supplies.
- Review connected businesses and artificial separation risks.
- Voluntary registration may support input tax recovery but adds pricing, record and filing obligations.
- The effective date determines when VAT must be charged and when pre-registration input tax may be considered.
Important dates and deadlines
Registration is generally required when taxable turnover exceeds £90,000 in the previous 12 months or is expected to exceed £90,000 in the next 30 days. The optional deregistration threshold is £88,000, subject to conditions.
Practical checklist
- Maintain a rolling 12-month turnover schedule.
- Classify sales as taxable, zero-rated, reduced-rated, exempt or outside scope.
- Consider customer type and pricing impact.
- Choose an appropriate VAT scheme.
- Update invoices, bookkeeping and bank arrangements from the effective date.
Frequently asked questions
Does turnover mean profit?
No. The threshold is based on taxable sales, not profit.
Can an overseas business rely on the £90,000 threshold?
Not always. Non-established businesses can face different registration rules.
How Accountants4All can help
Support matched to your circumstances
Accountants4All can review the liability, apply for registration, choose a scheme and set up Making Tax Digital-compatible records.
Official sources and further reading
This page is general guidance and does not create an adviser/client relationship. Tax rules and official guidance can change. Use the official sources above and obtain advice based on your circumstances.
Read the full tax disclaimer