If you run a business in London or anywhere in the UK, understanding VAT registration is essential to stay compliant and avoid penalties. At Filing Accounts—your trusted accountants in London, including Hounslow, Feltham, and West London—we help businesses navigate VAT registration smoothly and efficiently. This detailed guide explains everything you need to know about VAT registration, including when to register, how to register, and the benefits of being VAT registered.

What is VAT Registration?

VAT (Value Added Tax) is a tax charged on most goods and services sold within the UK. When your business is VAT registered, you must:

• Charge VAT on your sales (output tax)
• Reclaim VAT on your business purchases (input tax)
• Submit regular VAT returns to HMRC

VAT registration means your business is officially recognized by HMRC to collect and pay VAT.

When Must You Register for VAT?

As of April 2024, the VAT registration threshold in the UK is £90,000 of taxable turnover over any rolling 12-month period. You must register if:

• Your taxable turnover in the last 12 months exceeds £90,000, or
• You expect your taxable turnover to exceed £90,000 in the next 30 days

Taxable turnover includes the total value of VAT-applicable goods and services you supply, including zero-rated and reduced-rated items, but excludes VAT-exempt sales.

If you miss registering within 30 days of exceeding the threshold, HMRC can impose penalties and you will owe VAT from the date you should have registered.

👉 Register for VAT on GOV.UK

Who Needs to Register Regardless of Turnover?

You must also register for VAT regardless of turnover if:

• Your business is based outside the UK but supplies goods or services to UK customers
• You store goods in UK warehouses or fulfilment centres for sale in the UK

How to Register for VAT: Step-by-Step

Step 1: Check Your Eligibility Confirm your taxable turnover exceeds the £90,000 threshold or you expect it to soon. If below the threshold, you can still opt for voluntary registration to reclaim VAT on purchases and enhance business credibility.

Step 2: Gather Required Information For limited companies, you’ll need:

• Company registration number
• Business bank details
• Unique Taxpayer Reference (UTR)
• Details of turnover and tax returns

For sole traders or partnerships:

• National Insurance number
• Identity documents (passport or driver’s license)
• Bank account details
• UTR if applicable

Step 3: Choose a VAT Accounting Scheme Decide which VAT accounting scheme suits your business:

• Standard accounting (most common)
• Cash accounting (pay VAT when you receive payments)
• Flat rate scheme (simplified VAT calculation)

Step 4: Register Online Register online via the HMRC Government Gateway portal. Fill out the VAT registration form carefully, providing accurate turnover estimates and business activity details. Find more details about this in the link below;

https://www.gov.uk/register-for-vat/how-register-for-vat

Step 5: Await Confirmation HMRC will review your application and send a VAT registration number and certificate within a few weeks. This number is essential for charging VAT and submitting returns.

Benefits of VAT Registration

• Ability to reclaim VAT on business purchases
• Enhanced business credibility with suppliers and customers
• Avoid penalties by complying with VAT laws
• Access to VAT schemes that can improve cash flow

What Our Clients Say

“Filing Accounts made VAT registration completely stress-free. Their team explained everything clearly and handled the entire process for us. We were registered and compliant in no time!” — Sam M., Operations Director, Apxcel Ltd.

Why Choose Filing Accounts for Your VAT Registration?

As one of the most affordable and reliable accountants in London, we provide expert VAT registration and compliance services tailored to your business needs. Whether you operate as a sole trader or limited company in Hounslow, Feltham, or West London, we ensure your VAT registration is handled quickly and correctly-helping you avoid costly mistakes.

Final Thoughts

VAT registration is a critical step for growing businesses in the UK. Understanding when and how to register can save you time, money, and stress.

Contact Filing Accounts at info@filingaccounts.co.uk for professional VAT registration assistance and ongoing support to keep your business compliant and thriving.