Do I need to register for VAT as a limited company?

By The Micro Entity Accounts team · Qualified UK accountants · Updated 9 November 2026

When registration is compulsory

A limited company must register for VAT when its taxable turnover goes over £90,000 in any rolling 12-month period. The 12 months do not have to match your financial year.

You have 30 days from the end of the month in which you went over to register. You must also register if you expect to go over the threshold within the next 30 days alone.

What counts as taxable turnover

Taxable turnover is the total value of everything you sell that is not exempt from VAT. Sales at the standard, reduced and zero rates all count. For online sellers, sales on every platform count together.

Use our VAT threshold calculator to compare your own figure with the threshold.

Voluntary registration

A company can register before it reaches the threshold. This helps if your customers are VAT-registered businesses, because they can usually reclaim the VAT you charge, and because you can reclaim VAT on your own costs.

It may be less helpful if you sell mainly to private individuals, because VAT raises your prices or cuts your margin. Talk to us if you are unsure.

VAT returns and deadlines

Registered companies file VAT returns, usually every quarter. Each return is due one calendar month and seven days after the end of the VAT period. Even if you made no sales, you must file a nil return.

Our VAT returns service files every return for you on time.

How VAT fits with your accounts

VAT affects how your sales and costs appear in your records, so your accounts and your VAT returns need to agree. Our accounts service and bookkeeping service keep the two in step.