VAT

I've gone over the VAT threshold — what do I do now?

Once taxable turnover passes £90,000 you must register within 30 days, work out your effective date, and start charging VAT from then. The practical steps.

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 12 September 2026 against 2026/27 UK rates and current Companies House and HMRC guidance.

What this means for your company

Register online within 30 days of the end of the month you crossed £90,000. HMRC sets your effective date of registration; you then charge VAT from that date, update invoices and pricing, and prepare for Making Tax Digital reporting.

01

The immediate steps

02

Getting the transition right

Short answer

Register online within 30 days of the end of the month you crossed £90,000. HMRC sets your effective date of registration; you then charge VAT from that date, update invoices and pricing, and prepare for Making Tax Digital reporting.

The immediate steps

Confirm the month you crossed the rolling twelve-month threshold, then register through your Government Gateway account or via an agent within 30 days. You will need details of turnover, bank account and business activity, and a decision on any scheme such as cash accounting or flat rate.

Once HMRC confirms your effective date of registration, you must charge VAT on sales from that date even if you have not yet received your VAT number. Update pricing, contracts and accounting software so output VAT is captured correctly from day one.

Getting the transition right

Tell existing customers about the change, particularly if you deal with consumers who cannot reclaim VAT, since prices effectively rise by 20% unless you absorb the cost. B2B customers usually just want a VAT invoice.

Set up Making Tax Digital compatible software before your first return is due, and check whether you can reclaim VAT on pre-registration goods and services, which can soften the cash flow impact of registering.

Before you act

Rates, thresholds and deadlines quoted here reflect the 2026/27 UK position and current Companies House and HMRC guidance. Check GOV.UK, or ask us, before relying on them for your own company.

Related answers

More on vat

Every answer in this cluster is written for UK limited company directors and reviewed against current HMRC and Companies House guidance.

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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

I've gone over the VAT threshold — what do I do now?: questions directors ask

Can I choose an earlier registration date?

You can apply for an earlier voluntary date if it suits your business, but the compulsory date is fixed once you have crossed the threshold.

What if I miss the 30 day deadline?

HMRC can charge a failure to notify penalty based on the VAT due and the length of the delay, on top of the VAT itself.

Do I need new invoice templates?

Yes, they must show your VAT number, the VAT rate and amount, and other standard VAT invoice details.

What records are needed for i've gone over the vat threshold — what do i do now?

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.

How much does help with i've gone over the vat threshold — what do i do now cost?

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.

Can you take over i've gone over the vat threshold — what do i do now from another accountant?

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.

Can i've gone over the vat threshold — what do i do now be handled online?

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.

Which accounting software works best for i've gone over the vat threshold — what do i do now?

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.

What tax deadlines matter for i've gone over the vat threshold — what do i do now?

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.

Is this i've gone over the vat threshold — what do i do now guidance personal tax advice?

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.

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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.

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