VAT Registration for Limited Companies (2026)

VAT registration is compulsory once your taxable turnover goes over £90,000 in any rolling 12 months, or if you expect to go over £90,000 in the next 30 days alone. Below that, you can register voluntarily. A limited company registers online with HMRC using its company number, UTR, bank details and turnover estimates, and HMRC then sends a 9-digit VAT number. This guide explains when you must register, what HMRC asks, the dates that matter and the extra rules for companies run from outside the UK.

When Must a Company Register for VAT?

There are two tests. Registration is compulsory if either applies:

Test	Deadline to register	Effective date of registration
Backward look: taxable turnover in the last 12 months went over £90,000	Within 30 days of the end of the month you went over	The first day of the second month after you went over
Forward look: you expect to go over £90,000 in the next 30 days alone	By the end of that 30-day period	The date you realised you would go over

Example from HMRC: on 15 July a business’s taxable turnover for the last 12 months reaches £100,000 for the first time. It must register by 30 August, and its effective date of registration is 1 September.

Taxable turnover means everything you sell that is not VAT exempt or outside the scope of VAT, including zero-rated and reduced-rated sales. A company that only makes exempt sales does not register.

Voluntary registration

You can register below the threshold. It can make sense if your customers are VAT-registered businesses (they reclaim the VAT you charge), if you have significant VAT on start-up costs, or if being VAT registered helps you look established. HMRC may allow a voluntary registration to be backdated by up to 4 years, which affects both the VAT you can reclaim and the VAT you must account for, so choose the date carefully.

Companies Run From Outside the UK

This is where many founders living abroad get caught out. Under HMRC’s rules, a business with no UK establishment is a non-established taxable person (NETP), and an NETP must register for VAT as soon as it makes, or expects within 30 days to make, any taxable sales in the UK. There is no £90,000 threshold for an NETP.

HMRC would normally treat a UK-incorporated company as established in the UK, as long as it can make or receive business supplies at its registered business address. But HMRC also says that a registered, serviced or virtual office alone is not enough to create a business establishment. So a UK company whose directors and management are all abroad may be treated as an NETP, depending on its facts. If that could be you, settle it before you start selling to UK customers. Our guides to UK company formation for non-residents and business bank accounts for non-residents cover the other set-up steps.

What HMRC Asks When You Register

For a limited company, have these ready before you start:

Company registration number and the company’s Unique Taxpayer Reference (UTR).
Business bank account details for VAT repayments.
Turnover: your taxable turnover so far and an estimate for the next 12 months, split by standard-rate (20%), reduced-rate (5%) and zero-rated sales.
Business activity: a description, your SIC code, and whether you buy, sell or let land or property.
Dates: the date you want registration to start, and whether you were trading by then.
Trade with other countries: whether you will trade VAT-taxable goods outside the UK (you may need an EORI number) and any Northern Ireland and EU movements of goods.
Schemes: whether you want to join a scheme such as the Flat Rate Scheme or the Annual Accounting Scheme.
About the director: name, date of birth, National Insurance number (or a tax identification number from your country if you do not have one), home addresses and contact details.
Other business involvement in the last 2 years, with VAT numbers where they exist.
Information about Corporation Tax and PAYE, for example whether the company has paid either.

VAT schemes worth knowing about

Flat Rate Scheme: pay HMRC a fixed percentage of turnover instead of working out the VAT on every purchase. You can join if your VAT taxable turnover is £150,000 or less (excluding VAT). You cannot reclaim VAT on purchases, except some capital assets over £2,000.
Annual Accounting Scheme: one VAT return a year with advance payments, for estimated VAT taxable turnover of £1.35 million or less.

How to Register a Company for VAT: Step by Step

Work out whether you must register and your effective date, using the two tests above.
Gather the information in the list above, including turnover estimates and bank details.
Register online with HMRC. Most limited companies can register online. Some cases must use paper form VAT1, for example a registration exception or joining the Agricultural Flat Rate Scheme.
Wait for your VAT registration number. HMRC sends it by post with your effective date of registration and details of your first VAT return.
Account for VAT from the effective date, even while you wait. Raise prices to cover the VAT, then reissue invoices showing VAT once you have the number.
Sign up for a VAT online account and set up Making Tax Digital compatible software, because HMRC signs most businesses up to Making Tax Digital for VAT.

Common VAT Registration Mistakes

Only checking turnover at the year end. The 12-month test is rolling: check it every month.
Missing the 30-day forward test when one large contract will take you over the threshold.
Assuming a UK company run from abroad has a £90,000 threshold. If it has no UK establishment, it may have no threshold at all.
Picking a voluntary start date without thinking it through. A backdated date means VAT is due on sales from that date.
Charging VAT before you have a VAT number.

Do It Yourself or Use CorpAssist?

HMRC’s online form asks a long list of questions, and some of them, such as the effective date, turnover splits and schemes, decide how much VAT you pay. For a director living abroad, simply getting into HMRC’s online services can be slow.

With CorpAssist you answer one online questionnaire in plain English, a person checks your answers, and our team submits the registration to HMRC for you. It costs £69.99, and HMRC charges nothing. Submitted within 2 business days of a complete order. HMRC then decides the registration and sends your VAT number.

VAT Registration Done for You

£69.99. HMRC does not charge for VAT registration.

VAT registration prepared and submitted to HMRC for you
Questions on turnover, start date and schemes explained in plain English
Answers checked by a person before submission
Works for directors living outside the UK

Start — £69.99 What is included

Frequently Asked Questions

What is the VAT registration threshold in 2026?

The VAT registration threshold is £90,000 of taxable turnover. You must register if your taxable turnover for the last 12 months goes over £90,000, or if you expect it to go over £90,000 in the next 30 days alone.

Can I register for VAT if my turnover is under £90,000?

Yes. This is voluntary registration. You can then reclaim VAT on business costs, but you must charge VAT on your taxable sales and file VAT returns from your registration date. HMRC may allow a voluntary registration to be backdated by up to 4 years.

How much does it cost to register for VAT?

Registering with HMRC is free. CorpAssist prepares and submits the registration for your company for £69.99.

Do I need to register for VAT if my company is run from outside the UK?

It depends on whether HMRC treats the company as established in the UK. A UK-incorporated company is normally treated as established if it can make or receive supplies at its registered business address, but HMRC says a registered, serviced or virtual office alone is not enough. A business with no UK establishment that makes taxable sales in the UK must register whatever its turnover.

Can I charge VAT before I get my VAT number?

No. You cannot show VAT on invoices until you have your VAT registration number, but you must account for VAT from your effective date of registration. HMRC suggests raising your prices to cover the VAT, then reissuing invoices showing VAT once you have the number.

What happens after I register for VAT?

HMRC sends your 9-digit VAT registration number, your effective date of registration and details of your first VAT return by post. HMRC signs most businesses up to Making Tax Digital for VAT, so you keep digital records and file returns with compatible software.

What happens if I register for VAT late?

You must pay VAT on the sales you made from the date you should have been registered, even though you did not charge your customers VAT, and HMRC may charge a penalty depending on how much is owed and how late you are.

Official guidance: Register for VAT (GOV.UK) and VAT Notice 700/1. Related: PAYE employer registration, annual filing requirements and sole trader vs limited company.

Thresholds and rules checked against GOV.UK on 30 October 2026. This guide is general information, not tax advice; speak to an accountant about your company’s VAT position. CorpAssist is an independent commercial service and is not HMRC or GOV.UK.