Published: August 12th, 2024
The taxman – HM Revenue and Customs (HMRC) – 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:
- Its 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
- It expects its turnover to go over the £90,000 VAT threshold in the next 30 days
- It is an overseas business not based in the UK and supplies goods or services to the UK (or expects to in the next 30 days) – regardless of VAT taxable turnover
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.
HMRC will host a live webinar on 14 August 2024 to explain how to use the tool.
Details of the live and recorded webinars will be available from the help and support for VAT guidance pages on GOV.UK.
