5. Calculate VAT taxable turnover
VAT taxable turnover is the total value of everything you sell that isn’t exempt from VAT.
You must register for VAT with HM Revenue and Customs (HMRC) if it goes over the current registration threshold in a rolling 12-month period. This isn’t a fixed period like the tax year or the calendar year - it could be any period, for example the start of June to the end of May.
The current threshold is £85,000. It usually goes up on 1 April each year. There are different thresholds for buying and selling from other EU countries.
What to include
To check if you’ve gone over the threshold in any 12-month period, add together the total value of your UK sales that aren’t VAT exempt, including:
- goods you hired or loaned to customers
- business goods used for personal reasons
- goods you bartered, part-exchanged or gave as gifts
- services you received from businesses in other countries that you had to ‘reverse charge’
- building work over £100,000 your business did for itself
Include any zero-rated items - only exclude VAT-exempt sales, and goods or services you supply outside of the UK.
If you’re over the threshold
You must register straight away if you expect the value of everything you sell in the UK which isn’t VAT-exempt in the next 30 days alone to be over £85,000.
You should check your rolling turnover regularly if you’re close to going over the threshold.
Thresholds for previous tax years
Check historical information about VAT thresholds if you think you should have been registered in previous tax years.