Limited company guide
Quick answer
A UK limited company must register for VAT if its taxable turnover in any rolling 12 months goes over £90,000, and it must apply within 30 days of the end of the month it crossed the threshold. You can also register voluntarily below £90,000 when reclaiming input VAT or signalling B2B credibility is worth the admin. — LimitedCompany.Accountants, ICAEW-regulated accountants for UK limited companies.
How the UK £90,000 VAT registration threshold works for limited companies, compulsory vs voluntary registration, Making Tax Digital duties, and a practical checklist before you cross it.
Written and reviewed by Waqas Sagar Member of ICAEW, Fellow of ACCA, Fellow of AAT, a double graduate and entrepreneur at heart, helping startups grow and serving thousands of businesses nationwide with an excellent team. Published by LimitedCompany.Accountants, 12 London Road, Morden, London SM4 5BQ. Reviewed 21 October 2026 against 2026/27 UK rates and current Companies House and HMRC guidance.
A UK limited company must register for VAT if its taxable turnover in any rolling 12 months goes over £90,000, and it must apply within 30 days of the end of the month it crossed the threshold. You can also register voluntarily below £90,000 when reclaiming input VAT or signalling B2B credibility is worth the admin.
How does the £90,000 VAT threshold work?
Should I register for VAT before I reach £90,000?
How will VAT registration affect my prices and cash flow?
What should I do before my turnover reaches £90,000?
Can you register my company for VAT?
Before you act
Watch taxable turnover on a rolling 12-month basis. For this test, taxable turnover generally means standard-rated, reduced-rated and certain other supplies that count towards the threshold, excluding most VAT-exempt income.
Apply within 30 days after the end of the month you crossed the threshold. There is also a forward-looking test: you must register if you expect to go over the threshold in the next 30 days alone.
Registration is compulsory once the rolling or forward-looking test is met. Voluntary registration helps when you reclaim significant input VAT, sell to VAT-registered business customers, or invest heavily before revenue arrives.
Voluntary registration still brings Making Tax Digital for VAT duties. Model the Flat Rate Scheme and limited cost trader rules carefully before opting in.
You charge VAT on taxable sales and reclaim it on eligible purchases. Credit terms and exempt supplies affect cash flow, and e-commerce and marketplace channels need clean reports.
Deregistration may be possible if turnover falls below the deregistration threshold. Confirm the current figure on GOV.UK.
Track rolling taxable turnover monthly, and separate exempt, outside-scope and taxable sales.
Choose MTD-compatible software before your first return, use real numbers to decide between the standard, cash accounting and Flat Rate schemes, then update proposals, website prices and invoices.
LimitedCompany.Accountants can register you, set up Making Tax Digital for VAT and keep returns filed on time. Get a quote or book a call: 12 London Road, Morden, London SM4 5BQ · 020 3441 1258 · hello@limitedcompany.accountants.
Rates, thresholds and deadlines quoted here reflect the 2026/27 UK tax year. Check current GOV.UK guidance, or ask us, before relying on them for your own company.
Primary references
Local help
We work with company directors across London and Surrey from our office at 12 London Road, Morden, London SM4 5BQ. Pick your area, or send the form below and we will call you back.
Frequently asked
No. The compulsory registration threshold referred to here is £90,000 of taxable turnover in a rolling 12 months. Always confirm the current GOV.UK figure.
Yes. The company's taxable supplies count towards its own VAT registration test.
Yes, for almost all VAT-registered businesses. You need digital records and must file returns through compatible software.
Keep bank statements, sales and platform reports, purchase invoices, payroll records, VAT workings, finance agreements and Companies House correspondence. We confirm the exact list at onboarding and identify gaps before a filing deadline becomes urgent.
The fee depends on transaction volume, record quality, VAT and payroll requirements, historic catch-up and the level of reporting needed. We agree a fixed scope and price before technical work starts, with published packages available on our fees page.
Yes. We request professional clearance, collect the prior records and authorities, check the next Companies House and HMRC deadlines, and give you one clear handover list. The process is normally completed remotely.
Yes. We work through secure cloud records, scheduled reviews and digital approvals, while keeping a named team available by phone, video call and email. Clients can also visit our Morden office by appointment.
We regularly work with Xero, QuickBooks, FreeAgent, Sage and connected sales or expense apps. The right setup depends on transaction volume, integrations and the reports you need, not simply the software brand.
The relevant calendar may include annual accounts, Corporation Tax payment and return dates, confirmation statements, VAT returns, payroll submissions and Self Assessment. We map the dates from your company year end and registrations.
No. This page explains general UK rules and common accounting treatment. Your facts, contracts and wider tax position must be reviewed before you rely on a conclusion.
Included approach
Check the current rules
Deadlines, thresholds and filing rules change. GOV.UK and Companies House publish the current statutory position; advice should then be applied to your company’s circumstances.
Two ways to work with us
Everything is fixed price and agreed before we start. Prices are the same whether you are in London, Morden, Croydon or anywhere else in the UK.
All-inclusive packages
One fee covering your company’s filing calendar, with the price based on your turnover band.
One-off online filing
No monthly commitment. Add what you need to one basket and pay by card, with government fees shown separately at cost.
Not sure which fits? Book a free consultation or get an instant quote.
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