☕ Accounting Espresso #5 - Understanding VAT Registration: when “later” becomes too late
- Eva Viola Tedeschi
- Nov 3
- 1 min read
If your turnover is creeping up, VAT can’t be an afterthought. In the UK, you must register when your rolling 12-month taxable turnover goes over £90,000, or when you expect to exceed £90,000 in the next 30 days. Missing the moment can mean back-dated VAT and penalties.
What “rolling 12 months” actually means
It isn’t your calendar or financial year. Each month you look back 12 full months and total your VAT-able sales (not including exempt sales). If that total is over the threshold, you’re in scope.
If you expect to cross in the next 30 days
A large contract or launch can trigger expected crossing. In that case you must register before the end of that 30-day period.
Timing, penalties, and credibility
Register within 30 days of the end of the month you went over. Late registration can mean you still owe VAT from the date you should have registered, plus interest/penalties. Conversely, timely registration lets you reclaim input VAT where eligible and often looks more professional to B2B clients.
Practical checklist
set a simple rolling-turnover tracker (spreadsheet or accounting app)
agree your pricing (VAT-inclusive or exclusive) before you register
prepare your VAT account and chart of accounts for returns and payments
decide if any scheme (e.g., Flat Rate) is suitable for you (case-by-case)
If you're still unsure, get in touch and we'll help you sort it! You are not alone in this! Book a free discovery call NOW!
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