VAT Registration Limit Increased - Do you need to register for VAT?

From 1 April 2016, the Value Added Tax (VAT) registration limit increased to £83,000. The VAT de-registration threshold also increased to £81,000.

Who should register for VAT?

HMRC Logo You must register for VAT if your annual turnover exceeds the registration limit (£83,000 in 2016/17) and charge VAT on your sales. It is important to note that whether you do or do not register for VAT can depend on your past or future turnover. Should your turnover for the past 12 months exceed the annual registration limit, then your must register with HM Revenue and Customs.

Likewise, if you expect your turnover in the next 30 days to exceed the annual limit, then you must register for VAT. This can happen if you achieve a one-off, large sale. However, if you do believe that you will only exceed the VAT registration threshold temporarily (your future sales will remain below the de-registration threshold - £81,000 in 2014/15) then you can ask HMRC not to be registered – known as an exception from registration.

You should note that, should your turnover exceed the VAT registration limit (£83,000 in 2016/17) temporarily and you fail to notify HMRC within 30 days, then you are not able to gain an exception and will have to register for VAT. This could prove to be a costly mistake, as you will then have to pay HMRC any VAT that should have been charged on your sales.

For more information about any aspect of VAT, please contact our Senior VAT Manager, Alison Birch via email:, or simply complete a quick enquiry form and we will be happy to contact you directly.

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