New VAT Registration Estimator tool

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 by HMRC 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.

When you must register for VAT

A business must register for VAT if:

• their 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.
• they expect their turnover to go over the £90,000 VAT threshold in the next 30 days.
• they are an overseas business not based in the UK and supply goods or services to the UK (or expect 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.

VAT Registration Estimator

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 considering voluntary registration.

Use the VAT Registration Estimator.

VAT Registration Estimator webinar

HMRC has a free webinar recording to inform users about what the new VAT Registration Estimator does, who can use it, and what information you'll need. The webinar recording also provides a step-by-step guide on how to use the estimator.

Register to access the VAT Registration Estimator webinar recording.

First published 11 July 2024