VAT Registration Estimator
HM Revenue and Customs (HMRC) has rolled out a new digital tool to help businesses figure out what registering for VAT might mean for them.
The VAT Registration Estimator was created after small businesses said they’d find an online tool helpful for understanding when they need to register for VAT and how it might affect their profits.
A business must register for VAT if:
- Their total VAT taxable turnover for the past 12 months is over £90,000 (this was £85,000 until March 31, 2024).
- They expect their turnover to exceed £90,000 in the next 30 days.
- They’re an overseas business supplying goods or services to the UK (or expect to in the next 30 days) – no matter their VAT taxable turnover.
A VAT-registered business has to charge VAT on eligible sales and can usually reclaim it on eligible purchases.