Should I Register My Company For VAT?


After having registered your business, the next major decision is whether you should register for VAT - so you can then charge your customers.

Do You Have to Register for VAT?

According to the rules of The Department of Customs and Excise the threshold after which you are legally obliged to register is currently £77,000 per annum*, but it is important to acknowledge that this figure is turnover, not profit as well as being liable to change. If your businesses annual turnover is below this, registration is optional.

Positives of Registering for VAT

Many companies choose to register for VAT voluntarily, before they reach the threshold. VAT isn’t just a matter for bigger businesses, and there are several reasons in favour of registering for VAT regardless of your turnover:

  • When it comes to purchasing goods for your business, many companies will only deal with you if you have registered for VAT and can provide your VAT number.
  • Being VAT registered gives the impression that your company is of a significant size and may help to bring in business - your clients will probably be aware of the £77,000 threshold*. You should consider registration to increase your standing amongst competitors and appear more established and appealing to prospective clients.
  • Despite having to charge VAT on your goods/services when registered (Output tax), you will be able to reclaim VAT that you are charged by other businesses (Input tax). Furthermore, you will be able to reclaim the difference from HMRC if your input tax exceeds your output tax – this ultimately means you can end up saving some money.
  • Registering for VAT can ensure that you are ready to grow as a business – creating a positive impression about your intent.

What Can We Do?

Registering for VAT can be a very complicated process, and if not done correctly will lead to severe delays and possible rejection of your application. Therefore, there are many ways that we can help you:

  • As a registered agent for VAT registrations we have been completing applications for over 25 years. We are experts in avoiding the mistakes people make that lead to delays and know perfectly how to complete your application to make sure things run as smoothly as possible.
  • On receipt of your application we can guarantee that we will apply for your VAT number immediately, meaning we provide you with the fastest possible application service.
  • If required, we can request a backdating of your registration date, but any final decision on this obviously rests with HMRC.

Feeling Unsure?

If you aren’t sure whether voluntary VAT registration is right for your business or you need advice on the role of VAT in company formations then call us on 0800 0198 698 or contact us online.


*2019 update: The VAT registration threshold in the UK currently stands at £85,000 (We told you it was liable to change!)

* All timescales are dependent on how busy Companies House are and if their system is operating normally.

* All prices are plus VAT