Check what registering for VAT may mean for your business

Use this tool to estimate what registering for VAT might mean for your business.

If you are thinking about registering for VAT, you can use this tool to find out what it might mean for your business.  

You must register for VAT if: 

  • your total taxable turnover is over £90,000 — known as the VAT threshold 
  • you expect your turnover to go over the VAT threshold in the next 30 days 
  • you and your business are based outside the UK, and you supply any goods or services to the UK (or expect to in the next 30 days)

Your taxable turnover is the total value of everything you sell that is not exempt from VAT. 

You can also register for  VAT if your taxable turnover is less than £90,000, known as voluntary registration. 

You can use this tool to estimate what VAT might be owed or reclaimed by your business when you register for VAT. You can also use this tool multiple times to compare different situations that could apply to your business in the future.

Before you start 

You’ll need some information on your business sales and costs figures for goods and services sold in the UK. This could include: 

  • income you have received  
  • how much you paid for stock or materials 
  • the overhead costs of running your business 

You can find this information in your: 

  • current business records 
  • past business records, for example your last set of annual accounts 
  • future business plans, if you’re thinking of starting or growing your business 

You’ll also need to know: 

  • what rates of VAT your income and costs have 
  • what proportion of your income and costs are exempt or out of scope for VAT 

If you’re unsure where to find this information, you can check: 

We need this information to give you an estimate of how much VAT on average you might need to pay or reclaim in each return period. Most VAT-registered businesses submit a VAT Return every 3 months.

This tool estimates what registering for VAT may mean for your business. You should not use any of these figures to complete a VAT Return if you register for VAT. 

Start now

There are certain costs that you cannot reclaim VAT on, such as anything that’s only for personal use and goods and services used to make VAT exempt supplies. Read more information on what VAT can and cannot be claimed for.

Published 10 July 2024