How to use

Follow these steps

1. 1

   Calculate rolling 12-month taxable turnover

   Add up the value of your VAT-taxable sales (standard, reduced, and zero-rated — NOT exempt) for the last 12 months on a rolling basis, recalculating each month.

2. 2

   Check against the compulsory threshold

   If your rolling 12-month turnover exceeds £90,000 at the end of any month, you must register for VAT — application due within 30 days.

3. 3

   Forecast the next 30 days

   Even if your past 12 months are under the threshold, you must register immediately if you reasonably expect a single 30-day period to exceed £90,000 (e.g. a big upcoming contract).

4. 4

   Consider voluntary registration

   Below the threshold you can voluntarily register if it helps — typically when most sales are to other VAT-registered businesses (your VAT is just a recoverable cost to them) and you''re paying significant input VAT on your own costs.

5. 5

   Choose a scheme

   Standard accounting (most flexible), Cash Accounting (pay VAT only when you''re paid), Annual Accounting (one annual return instead of quarterly), or Flat Rate Scheme (simplified — less reclaim, simpler return). Eligibility varies.