VAT registration: when to register and how to plan

18 Oct 2025• Team Premier• Tax• #VAT#Tax
VAT registration: when to register and how to plan
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Getting VAT right saves money and stops HMRC headaches. Here’s a quick, practical walkthrough for UK SMEs.

Understand the VAT threshold

The UK VAT registration threshold is assessed on a rolling 12‑month basis, not by calendar year.

Rolling 12 months explained

Each month, add up the last 12 months of taxable turnover. If it exceeds the threshold, you must register within 30 days.

One‑off large sales

A single big invoice can tip you over. Keep a simple monthly check so you’re not caught out.

How to register

Register online through your Government Gateway. You’ll receive a VAT number and effective date; charge VAT on sales from that date.

Pricing with VAT

Decide if your prices are VAT‑inclusive or exclusive. Communicate clearly on quotes and invoices so customers aren’t surprised.