HMRC’s VAT Notice 700/1: should I be registered for VAT? has recently been updated. The taxable turnover threshold, that determines whether businesses should be registered for VAT is currently £85,000. The taxable turnover threshold that determines whether businesses can apply for de-registration is £83,000.
It was confirmed as part of the Autumn Budget 2018 measures that the taxable turnover registration and deregistration thresholds will be frozen at the current rates until at least 31 March 2022.
What is the criteria?
Businesses are required to register for VAT if they meet either of the following two conditions:
- At the end of any month, the value of the taxable supplies made in the past 12 months or less has exceeded £85,000; or
- At any time, there are reasonable grounds for believing that the value of taxable supplies to be made in the next 30 days alone will exceed £85,000.
The registration and de-registration threshold for relevant acquisitions from other EU Member States is also £85,000.
MJB Avanti can help you with all aspects of your VAT reporting including VAT registration and de-registration. If you think you may be liable for VAT, please contact MJB Avanti (08000) 388 799 to see how we can help you.