VAT registration is a legal requirement when your taxable turnover exceeds £90,000 in any 12‑month period. This article explains the rules, lists the documents you need to register and walks you through the online application. It also discusses registration timeframes and provides tips for a smooth process.

Stuart Kerr | Published 04/11/25 | Updated 04/11/25

Value‑added tax applies to most goods and services sold in the UK. If your business’s taxable turnover exceeds the threshold set by HMRC, you must register for VAT. Here’s what you need to know about thresholds, required information, the registration process and potential pitfalls.

When is registration compulsory?

HMRC requires registration when your VAT‑taxable turnover exceeds £90,000 in any 12‑month periodgov.uk. Taxable turnover includes all sales subject to VAT but excludes exempt supplies and outside‑scope income. If you expect your turnover to exceed the threshold in the next 30 days, you must register within 30 days of realising this and the effective date of registration is the date you knew you would exceed the limitgov.ukgov.uk. You may also register voluntarily below the threshold to reclaim input VAT or enhance your business’s credibility.

Information needed to register

When registering for VAT online, you must provide details about your business. Limited companies need their company registration number, bank account details, unique taxpayer reference (UTR) and an estimate of taxable turnovergov.uk. Sole traders and partnerships must provide National Insurance numbers, identity documents, date of birth, and bank account detailsgov.uk. All applicants need a Government Gateway user ID and password. HMRC allows you to save your application and complete it later if you need more timegov.ukgov.uk.

How to apply online

1. Create or log in to your Government Gateway account. If you don’t have one, HMRC will guide you through registration.

2. Complete the VAT registration form. Enter your business details, contact information, bank account and turnover estimates. Choose your accounting period (usually quarterly) and VAT scheme (standard, flat rate, annual accounting or cash accounting). For small service businesses with few purchases, the flat rate scheme may reduce administrative effort.

3. Submit the application and await your VAT number. Typical online applications take 14 – 30 days to process, although complex cases can take 60 dayslawhive.co.uklawhive.co.uk. You may receive your VAT certificate by post or electronically through your Government Gateway account. Until you have your VAT number, charge VAT on sales and inform customers that your invoice will be updated once registration is confirmed.

Tips and common mistakes

• Have your documents ready. Missing bank statements or identity documents can delay registration. Gather everything ahead of timelawhive.co.uk.

• Enter accurate turnover estimates. HMRC uses these to determine your eligibility for certain schemes. Over‑ or under‑estimating could lead to penalties later.

• Register on time. Late registration results in back‑dated VAT liabilities and interest. Mark key dates in your calendar and apply as soon as you anticipate exceeding the thresholdlawhive.co.uk.

• Choose the right VAT scheme. Discuss options with your accountant; flat rate and annual accounting schemes can simplify VAT for small businesses.

Registering for VAT ensures you comply with UK tax law and allows you to reclaim input VAT on purchases. By understanding the threshold rules, preparing your documents and following the online application steps, you can complete registration smoothly and avoid common pitfalls.

About the Author

Stuart Kerr, Partner in Bookkeeping Packages. You can contact him on stuart@bookkeepingpackages.co.uk.