VAT registration threshold £90,000: planning for services businesses

Summary

VAT registration becomes mandatory when rolling 12-month taxable turnover crosses the threshold (verify current figure on GOV.UK). Services businesses often discover late-season spikes push them over.

1. Monitoring

Maintain a rolling spreadsheet of taxable supplies net of credits. Beware partially exempt sectors.

2. Cashflow

Adding 20% VAT changes B2C pricing unless you absorb margin. Model both.

3. Sources

• GOV.UK — VAT registration

4. Expansion

Coordinate MTD-compatible software early. Train finance on evidence requirements for zero-rated vs exempt supplies.