Advent Day 10 – Vat registration turnover £85k within 12 months

Let’s break down how the VAT turnover threshold works for our clients.

The VAT registration threshold is currently £85,000.

This means that if your business’ taxable turnover exceeds £85k in a 12-month period, you are required by law to register for VAT.

Taxable turnover refers to the total value of everything you sell that isn’t exempt from VAT.

Once you’re registered, you will need to charge VAT on all of your VAT-eligible sales (currently 20% in most cases) and can reclaim any VAT you’ve paid on eligible expenses.

Keep in mind, this isn’t a one-time evaluation. You should monitor your taxable turnover regularly because if you cross the threshold at any point, you must register within 30 days of the end of the month it occurred.

We understand this can be a complex process, so feel free to contact us for any assistance or advice on managing your VAT registration and returns. We’re here to ensure your business complies with all regulations and to help you understand what you need to do.”

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