VAT - 05.04.2016

Registration limit creeps up

Small rise in limits. The amount of annual turnover a business can have before it’s obliged to register for VAT was raised from £82,000 to £83,000 from 1 April 2016. At the same time the deregistration limit increased from £80,000 to £81,000.

Can you register? Where your non-exempt business turnover exceeds the registration limit you must register within the next 30 days. However, anyone can register for VAT where they have some business activity which is not exempt.

Tip. As a general rule, if the majority of your customers are VAT registered it’s advisable to be registered even where your turnover is lower than the registration limit as this means that you can reclaim VAT on purchase costs.

Since 1 April 2016 you must register for VAT if your non-exempt turnover in the previous twelve months exceeds £83,000. However, you’ll usually be better off by registering even where turnover is less than that.

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