How to Register for VAT: Online Step-by-Step Guide

The Accounted Business Team·2 March 2026·8 min read

Registering for VAT is one of those business milestones that can feel intimidating but is actually straightforward once you know what to expect. Whether you are registering because you have hit the threshold or because you have chosen to register voluntarily, this guide walks you through the entire process.

When Must You Register for VAT?

VAT registration is compulsory when your VAT taxable turnover exceeds the registration threshold. As of the 2025/26 tax year, the threshold is £90,000.

There are two tests:

The Historical Test

You must register if your VAT taxable turnover in the past 12 months (on a rolling basis, not just the tax year) has exceeded £90,000. This is checked at the end of every month. You look back at the previous 12 months' turnover, and if the total has gone over £90,000, you must register.

You have 30 days from the end of the month in which you exceeded the threshold to notify HMRC. Your registration will then be effective from the first day of the second month after you exceeded the threshold.

Example: Your rolling 12-month turnover exceeds £90,000 at the end of March 2026. You must notify HMRC by 30 April 2026. Your VAT registration is effective from 1 May 2026.

The Future Test

You must also register if at any point you expect your turnover to exceed £90,000 in the next 30 days alone. This is less common but catches businesses that land a single large contract or have a sudden spike in sales.

In this case, you must register before the start of the 30-day period in which you expect to exceed the threshold.

What Counts as VAT Taxable Turnover?

VAT taxable turnover includes the total value of everything you sell that is not exempt from VAT. This includes goods and services at the standard rate (20%), reduced rate (5%) and zero rate (0%). It does not include exempt supplies (such as insurance and certain financial services) or income that is outside the scope of VAT.

It is your gross sales figure, not your profit. Expenses do not reduce your VAT taxable turnover.

Can You Register Voluntarily?

Yes. You can register for VAT even if your turnover is below the threshold. There are several reasons businesses choose to do this:

Reclaiming VAT on purchases. If you buy a lot of materials, equipment or services that include VAT, being registered means you can reclaim that VAT. This is particularly beneficial in the early stages of a business when you are investing in equipment.
Appearing more established. Some businesses feel that having a VAT number signals credibility, especially when dealing with larger companies.
Flat Rate Scheme savings. Under the Flat Rate Scheme, you charge VAT at the standard rate but pay HMRC a lower percentage. For some businesses, this results in keeping a portion of the VAT collected.

The downside of voluntary registration is the administrative burden of filing VAT returns (quarterly under MTD) and the potential impact on pricing if your customers are not VAT registered themselves and cannot reclaim the VAT you charge.

What You Need Before Registering

Gather the following before you start the online registration:

Business Details

Your business name (or your personal name if you are a sole trader)
Your business address
Your trading name (if different from your legal name)
The date you exceeded the threshold (or your chosen registration date for voluntary registration)
A description of your main business activity (HMRC uses SIC codes)

Personal Identification

Your National Insurance number
Your date of birth
Your Government Gateway user ID and password (create one at gov.uk if you do not have one)

Banking Information

Your business bank account details (sort code and account number)
HMRC uses these to process any VAT refunds due to you

Turnover Information

Your estimated taxable turnover for the next 12 months
Your turnover for the past 12 months (if registering because you exceeded the threshold)

VAT Scheme Choices

Think about which VAT scheme you want to use before registering, as you can apply at the same time:

Standard VAT accounting — you account for VAT when you issue or receive invoices, regardless of when you are paid
Cash accounting — you account for VAT when you actually receive or make payments (better for cash flow if you have slow-paying customers)
Flat Rate Scheme — you pay a fixed percentage of your turnover as VAT (simpler but not always cheaper)
Annual accounting — you make advance VAT payments and submit one return per year instead of four

You do not have to decide immediately — you can join these schemes later — but it saves time if you know what you want at registration.

Step-by-Step Online Registration

Step 1: Sign In to Government Gateway

Go to gov.uk and search for "register for VAT." You will be directed to the online registration service. Sign in with your Government Gateway credentials.

If you do not have a Government Gateway account, you need to create one first. This involves verifying your identity, which can take a few days if you do so by post.

Step 2: Start the Registration

Once signed in, you will see the option to register for VAT. Select whether you are registering as a sole trader, partnership, or limited company.

Step 3: Enter Your Business Details

Provide your business name, address, contact details and a description of your business activity. HMRC asks you to select a SIC (Standard Industrial Classification) code that best describes what you do. The system provides a search function to help you find the right code.

Step 4: Specify the Registration Date

If you are registering because you exceeded the threshold, enter the date you exceeded it. HMRC will set your effective registration date based on the rules described earlier.

If you are registering voluntarily, you can choose your registration date. It can be the current date or a future date.

Step 5: Enter Turnover Figures

Provide your estimated taxable turnover for the next 12 months and, if applicable, your actual turnover for the past 12 months.

Step 6: Choose Your VAT Scheme

Select whether you want to use standard accounting, cash accounting, the Flat Rate Scheme, or annual accounting. If you are not sure, standard accounting is the default and you can change later.

Step 7: Provide Bank Details

Enter your business bank account sort code and account number. This is where HMRC will send any VAT refunds.

Step 8: Review and Submit

Check all the details you have entered. Once submitted, you cannot easily change certain information (like your registration date), so take a moment to confirm everything is correct.

Submit the registration.

What Happens After You Register

Receiving Your VAT Number

HMRC typically processes VAT registrations within two to four weeks, though it can sometimes take longer during busy periods. You will receive a letter (and an online notification if you have opted in) confirming your VAT registration number.

Your VAT number is a nine-digit number that you must include on all VAT invoices.

Backdated Registration

If your registration is backdated (because you exceeded the threshold some time ago), you may need to account for VAT on sales made between the effective registration date and the date you actually registered. This means you might owe VAT on sales where you did not charge the customer VAT. This can be costly, which is why it is important to monitor your turnover and register on time.

Start Charging VAT

From your effective registration date, you must charge VAT on all taxable sales at the appropriate rate. Update your invoices to include your VAT number, the VAT rate, and the VAT amount.

Keep Digital Records

Under Making Tax Digital for VAT, you must keep digital records of all your VAT transactions using MTD-compatible software. Accounted is MTD compliant for VAT, so once you are registered, you can manage everything — recording transactions, calculating VAT, and filing returns — in one place.

File Your First Return

HMRC will assign you to a VAT quarter (or month, or annual period depending on your scheme). Your first return may cover an irregular period — from your registration date to the end of the quarter. After that, returns follow a regular quarterly pattern.

Common Questions

Can I backdate a voluntary registration?

Yes. You can backdate a voluntary registration by up to four years. This is useful if you have been paying VAT on purchases but were not registered to reclaim it.

What if I registered late?

If you should have registered but did not, register as soon as possible. HMRC may charge a penalty for late registration. The penalty depends on how late you are and whether there was a reasonable excuse. Being proactive and registering voluntarily (even if late) is always better than waiting for HMRC to notice.

Do I need to charge VAT to overseas customers?

The rules for overseas sales are complex and depend on whether you are selling goods or services, and where your customer is based. For services to business customers outside the UK, the place of supply is usually the customer's country, meaning you do not charge UK VAT. For goods, it depends on the shipping destination and applicable customs rules.

Can I deregister later?

Yes. If your turnover falls below the deregistration threshold (currently £88,000), you can apply to cancel your VAT registration. You can also deregister if you stop trading.

Set Up Your VAT in Accounted

Once you receive your VAT number, add it to your Accounted settings under Settings > VAT. Penny, Accounted's AI bookkeeper, will start tracking VAT on your transactions — calculating VAT due on sales, identifying reclaimable VAT on purchases, and preparing your return figures each quarter.

If you are newly VAT registered, Penny also helps with the transition. She identifies which of your products and services should have VAT applied and at what rate, and flags anything that needs your attention.

Start your free trial of Accounted today and take the complexity out of VAT from day one. Between the automatic VAT calculations, MTD-compliant filing, and Penny's error-checking, your VAT obligations are handled — so you can concentrate on running your business.

More on Industry Guides

Industry Guides