You must register for VAT with HM Revenue and Customs (HMRC) if your business’ VAT taxable turnover is more than £81,000. You can register voluntarily if it’s below this, unless everything you sell is exempt.
When you register, you’ll be sent a VAT registration certificate. This confirms:
• your VAT number
• when to submit your first VAT Return and payment
• your ‘effective date of registration’ – this is the date you went over the threshold, or the date you asked to register if it was voluntary
From the effective date of registration you must:
• charge the right amount of VAT
• pay any VAT due to HMRC
• submit VAT Returns
• keep VAT records and a VAT account
You can also reclaim the VAT you’ve paid on certain purchases made before you registered.