HMRC’s VAT ‘Notice 700/1: should I be registered for VAT?’ has recently been updated. The update reflects the fact that the taxable turnover threshold, that determines whether businesses should be registered for VAT has been frozen at £85,000 from 1 April 2019. In addition, the taxable turnover threshold that determines whether businesses can apply for de-registration remains at £83,000.
It was confirmed as part of the Autumn Budget 2018 measures that the taxable turnover registration and de-registration thresholds will be frozen at the current rates until 31 March 2022.
Businesses are required to register for VAT if they meet either of the following two conditions:
- At the end of any month, the value of the taxable supplies made in the past 12 months or less has exceeded £85,000; or
- At any time, there are reasonable grounds for believing that the value of taxable supplies to be made in the next 30 days alone will exceed £85,000.
The registration and de-registration threshold for relevant acquisitions from other EU Member States is also £85,000.