Now that businesses are open again, turnover in the business is hopefully picking up If you are not VAT registered though, you do need to monitor the sales closely as there are strict rules as to when you have to register for VAT.
Each month you need to total your sales for the month. You then need to keep a 12-month rolling total, that is, the total amount for that month and the preceding 11 months of your VAT taxable turnover. When the total reaches the VAT registration threshold (£85,000 for a 12-month period, you need to register by the end of the following month. So, if your VAT taxable turnover exceeds £85,000 for the twelve months to 31 March 2022, you need to register for VAT by 30 April 2022.
The other criteria is that, if, at the start of any 30-day period you believe that your VAT taxable turnover for that 30-day period alone will exceed the VAT registration threshold you need to register immediately.
We have tools that can monitor this for you or spreadsheets that you can use to monitor this yourself. Contact us for further details
