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When to register
Register when your VAT-taxable turnover in the last 12 months exceeds £90,000, or you expect it to in the next 30 days alone. Non-UK businesses with no UK establishment must register from their first taxable supply in the UK — there is no threshold for them.
Rates
Standard rate 20%, reduced rate 5% (for example domestic energy) and zero rate 0% (for example most food and children’s clothes). Some supplies are exempt.
Returns and Making Tax Digital
VAT-registered businesses keep digital records and file through MTD-compatible software, usually quarterly. Returns and payment are due 1 month and 7 days after the period end.
Frequently asked questions
Can I register voluntarily?
Yes, below the threshold, which can help if your customers are VAT-registered businesses.
What is the Flat Rate Scheme?
A simplified scheme for small businesses with a fixed percentage of turnover; it does not suit everyone.
Do I charge UK VAT to Gulf customers?
Many services to overseas business customers are outside the scope of UK VAT; goods exports are usually zero-rated. Check the place-of-supply rules.
Sources: HM Revenue & Customs (GOV.UK): VAT registration, VAT rates, Making Tax Digital for VAT, VAT penalties.
General information as at the date above, not advice. Rules change — confirm your position with a qualified accountant.