If you run a business in Doncaster, Mexborough, Conisbrough or elsewhere in South Yorkshire, understanding VAT registration is essential, especially as your business begins to grow. Whether you’re nearing the threshold or voluntarily registering to reclaim VAT on expenses, this guide walks you through every step clearly and simply.
What Is VAT and Who Needs to Register?
VAT (Value Added Tax) is a tax on most goods and services sold in the UK. Businesses must register for VAT if:
- Their VAT-taxable turnover exceeds £90,000 in a rolling 12-month period (as of 1 April 2024)
- They expect their turnover to exceed the threshold in the next 30 days
- They’re based outside the UK but supply goods or services to UK customers
- They voluntarily choose to register, often to reclaim VAT on purchases
Not sure if you need to register? A local accountant can help assess your situation and obligations.
Why Register for VAT?
Even if you haven’t hit the threshold, there can be advantages to registering early:
- Reclaim VAT on qualifying purchases, tools, equipment, and services
- Add credibility with suppliers and larger clients
- Avoid delays when you do cross the threshold unexpectedly
However, it also adds admin: VAT returns must be submitted (usually quarterly), and prices must be shown inclusive of VAT for consumers.
Step-by-Step: How to Register for VAT
1. Check Your Turnover
Add up all VAT-taxable sales (including zero-rated items) over the past 12 months. If the total exceeds £90,000, you must register.
Tip: Use accounting software or spreadsheets to monitor this monthly.
2. Choose How to Register
You can register:
- Online via HMRC (recommended)
- Through a tax agent or accountant like Garner & Daughters
- Using a VAT1 paper form (only in limited cases)
Most small businesses register themselves or via their accountant online.
3. Create a Government Gateway Account
To register online, you’ll need a Government Gateway user ID and password. This is used to access all HMRC digital services.
4. Complete the VAT Registration Form
When filling out the online VAT registration form, you’ll need:
- Your business details (name, address, contact info)
- Legal structure (sole trader, limited company, etc.)
- Bank details
- Estimated turnover and activity type
- Start date for VAT (the date your turnover exceeded the threshold or voluntary start)
Once submitted, HMRC usually responds within 2 to 4 weeks.
5. Receive Your VAT Number and Certificate
You’ll receive:
- A VAT registration certificate (sent to your Government Gateway account)
- Your unique VAT number
- Instructions on when and how to file your first return
You must:
- Start charging VAT (usually 20%) from your registration date
- Update invoices to include your VAT number
- Start keeping digital records using MTD-compatible software
6. Register for Making Tax Digital (MTD)
Once VAT registered, you’re also required to follow Making Tax Digital rules. That means:
- Keeping digital records
- Filing VAT returns through approved software (like Sage, Xero, QuickBooks)
Not sure what software is right? We can help guide you.
After Registration: What Are Your Ongoing Duties?
Once registered for VAT, you must:
- Submit VAT returns (typically quarterly)
- Pay any VAT due to HMRC
- Keep compliant digital records
- Display VAT-inclusive pricing (for B2C businesses)
Failure to file or pay on time can result in fines under HMRC’s points-based penalty system.
Need Help with VAT?
At Garner & Daughters, we support small and medium businesses across South Yorkshire with:
- Registering for VAT
- Filing accurate, timely returns
- Making Tax Digital compliance
- VAT reclaim support
Whether you’re just crossing the threshold or voluntarily registering, our tailored, down-to-earth support helps you stay compliant and in control.
Ready to register for VAT or want advice before taking the step? Contact us today – we’re here to make the process simple and stress-free.
