Compulsory registration for VAT must occur if:
- your VAT taxable turnover exceeds ‘the threshold’ (£83,000 for FY16/17) in a 12 month period.
- you receive goods from the EU in the UK which exceed £83,000.
- you expect in a single 30 day period to go over the threshold.
Within 30 days of exceeding the threshold you must register. If you register late, you will still be required to pay the VAT from the period that you should have registered. It is essential to keep your records up to date and each month monitor your turnover if you are getting close to the threshold.
Penalties can occur depending on how much you owe and how late your registration is.
ML Accounting can advise you on whether you should be registered and assist you in the VAT Registration process.