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HMRC launches VAT Registration Estimator

HM Revenue and Customs has launched a digital tool to help businesses estimate what registering for VAT may mean for them.

The VAT Registration Estimator has been developed after feedback from small businesses suggested an online tool would be helpful to show when their turnover could require businesses to register for VAT and its effect on profits.

A business must register for VAT if:

  • their total VAT taxable turnover for the previous 12 months is more than £90,000 – known as the ‘VAT threshold’ – until 31 March 2024 this was £85,000
  • they expect their turnover to go over the £90,000 VAT threshold in the next 30 days
  • they are an overseas business not based in the UK and supply goods or services to the UK (or expect to in the next 30 days) – regardless of VAT taxable turnover

PLEASE NOTE!

It is worth noting that businesses registered for VAT are also required by HMRC to submit their quarterly returns using approved software, which can incur further costs that will need to be accounted for.

For more information, visit our Signature Accounting Software page and Making Tax Digital section of the website

A VAT-registered business must charge VAT on eligible sales and can usually reclaim it on eligible purchases. There are around 300,000 new VAT registrations each year.

The estimator can help any business to see what registering for VAT could mean, as well as linking to further information about the registration process. It is also a useful tool for businesses operating below the threshold and for those considering voluntary registration.

The VAT Registration Estimator Webinar

HMRC will host a live webinar on 24‌‌‌ ‌‌July‌‌‌ ‌‌2024 to explain how to use the tool.

In this webinar, find out:

  • what the VAT Registration Estimator does
  • who can use it
  • what information you’ll need

HMRC will also give you a step-by-step-guide on how to use the estimator.
Register here

Details of the live and recorded webinars will be available from the help and support for VAT guidance pages on G‌‌‌OV‌‌‌‌‌‌.UK.

If you need any further guidance on VAT Registration for your business, we are here to help on 01384 376 964.

Folkes Worton LLP Chartered Accountants
Accounting for the Future