VAT registration in the UK: when, how, and which scheme
The £90,000 threshold, voluntary registration, Flat Rate vs Standard, and how Making Tax Digital affects you.
When you must register
You must register for VAT if your taxable turnover exceeds £90,000 in any rolling 12-month period, or if you expect to cross it in the next 30 days. You can also register voluntarily, which can be useful if most of your customers are VAT-registered businesses.
Picking a scheme
Standard VAT is the default. The Flat Rate Scheme (FRS) simplifies things for businesses under £150k turnover but is rarely the cheapest option since 2017. Cash Accounting helps if your customers pay slowly. An accountant will model the best option for your numbers.
Making Tax Digital
All VAT-registered businesses must keep digital records and file via MTD-compatible software (Xero, QuickBooks, FreeAgent, Sage). If you're still on spreadsheets, your accountant should help you migrate.
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