How to Register for VAT: A Step-by-Step Guide for 2026

7 min read

You register for VAT online through HMRC, and it becomes compulsory once your taxable turnover for the last 12 months goes over £90,000, or you expect it to pass that figure in the next 30 days alone. Registration itself is free and you can complete it in one sitting. The part that catches people out is the timing, because HMRC counts your turnover on a rolling basis and the deadlines are tighter than most owners expect.

Here is how the rules work in 2026, what to have ready before you start, and what changes from the day your registration takes effect.

Who must register for VAT

There are two tests, and meeting either one means registration is compulsory:

• Your taxable turnover for the last 12 months has gone over £90,000. This is a rolling total, so check it at the end of every month, not just at your year end.
• You expect your taxable turnover to go over £90,000 in the next 30 days alone, for example because you have just signed one large contract.

Businesses based outside the UK that supply goods or services here must register whatever their turnover, because no threshold applies to them. If you take over a VAT registered business, you must register once the combined turnover of your existing business and the one you bought goes over the threshold.

The deadlines HMRC holds you to

If you crossed the threshold in the last 12 months

You must register within 30 days of the end of the month in which you went over. Your registration then takes effect from the first day of the second month after you crossed. HMRC’s own example: your rolling turnover passes £90,000 on 15 July. You must register by 30 August, and you are VAT registered from 1 September.

If you will cross it in the next 30 days

The clock runs faster here. You must register by the end of that 30-day period, and your registration takes effect from the date you realised you would go over, not the date the money arrives. Sign a £100,000 contract on 1 May and your effective date is 1 May, even if you are not paid until the end of the month.

What counts as taxable turnover

Taxable turnover is everything you sell that is not exempt from VAT or outside its scope. It includes zero-rated sales, which is the point most people miss. A bakery, a bookshop or an exporter can cross the threshold without making a single sale at 20%.

Count standard, reduced and zero-rated sales, goods you hire or loan to customers, business goods taken for personal use, anything you barter or give away as gifts, and certain services from abroad that you account for under the reverse charge. Leave out exempt income such as residential rent, insurance and most financial services.

Registering before you have to

You can register voluntarily at any turnover level. It makes sense when your customers are mostly VAT registered businesses, because they reclaim what you charge and you get to reclaim VAT on your own costs, from software and stock to accountancy fees. It is far less attractive when you sell to the public, since a 20% price rise lands on people who cannot claim it back, or the VAT comes straight out of your margin. If you are hovering just under the limit, our guide on approaching the £90,000 VAT threshold covers the planning options.

What to have ready before you start

For a limited company you will need your company registration number, business bank details, Unique Taxpayer Reference, details of your annual turnover and an estimate of taxable turnover for the next 12 months. HMRC also asks about your Self Assessment, Corporation Tax and PAYE records where they apply.

Sole traders and partnerships need a National Insurance number, an identity document such as a passport or driving licence, bank details, a UTR if you have one, plus the same turnover figures. Having everything to hand before you sign in saves a lot of back and forth.

How to register, step by step

1. Work out your effective date of registration using the rules above. Everything else hangs off this date.
2. Gather the information for your business type.
3. Search gov.uk for “register for VAT” and sign in with your Government Gateway ID, or create one when you first sign in. You can save your application and come back to it.
4. Complete the extra forms the service adds based on your circumstances.
5. Submit, then wait for your certificate and nine-digit VAT number, which arrive by post.

A small number of businesses cannot use the online route and must post a paper VAT1 form instead, including anyone applying for a registration exception, joining the Agricultural Flat Rate Scheme, or registering a local authority. An accountant can also register you as your agent and deal with HMRC on your behalf.

Invoicing while you wait for your number

You cannot show VAT as a separate line on invoices until your number arrives, but you still owe HMRC the VAT on everything from your effective date. The fix, straight from HMRC’s guidance, is to increase your prices to cover the VAT and tell your customers why. Once the number lands, reissue those invoices showing the VAT properly so business customers can reclaim it. Nobody pays twice, and you are not left funding the VAT yourself.

After you register

• Put your nine-digit VAT number on every invoice you raise.
• HMRC signs you up to Making Tax Digital for VAT automatically unless you are exempt, so you will need compatible software such as Xero, QuickBooks or FreeAgent to keep digital records and file returns.
• Charge VAT from your effective date and reclaim VAT on eligible business purchases, including, within limits, some costs from before you registered.
• Consider the accounting schemes. You can join the Flat Rate Scheme if you expect taxable turnover of £150,000 or less, and the Cash or Annual Accounting Schemes at £1.35 million or less.
• If your turnover later falls below £88,000, you can ask HMRC to cancel your registration.

If you register late

HMRC treats you as registered from the date you should have been, so you owe VAT on every sale since then even though you never charged it. On top of that there can be a failure to notify penalty, scaled to how much you owe and how late you are. If you only went over because of a one-off spike and expect to drop straight back under, you can apply for a registration exception instead, and HMRC will write to confirm whether you get one.

Frequently asked questions

Get the timing right, not just the form

The best VAT decisions happen a month or two before you have to make them, while there is still time to pick your effective date, choose a scheme and price your work properly. If your turnover is heading for £90,000, get in touch and we will map it out with you, on a fixed fee and in plain English.

Written by Yoni Finke FCCA

Founder of YF Accounting, a fixed-fee, fully digital accountancy practice in Manchester serving SMEs, sole traders and landlords across the UK. One point of contact, unlimited support, no surprise bills.

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This article is part of our VAT guide. See the full topic for related reads.