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VAT Thresholds

The current VAT threshold for 2024 – 2025 is £90,000.

The threshold is set by HMRC every tax year, the new threshold has increased from £85,000 to £90,000. This has been the first change since the 2017- 2018 tax year. The threshold helps determine whether a business should register for VAT, this can be when a business's annual taxable turnover goes over the threshold or it is expected to.

This threshold applies to all businesses regardless of their structure, meaning a sole trader can become a VAT-registered self-employed business.

How do you work out taxable turnover?

A business's taxable turnover is the total value of everything they sell. This figure will not include goods or services that are exempt from VAT.

How to register?

There are two ways to register, either online or by post. Depending on the type of business these can only register by post through the VAT1 form.

If the business has an agent (an accountant or tax advisor) they can register on the business's behalf.

After the registration has been submitted HMRC will post a VAT certificate, within 30 days of the registration.


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