For small businesses, VAT registration is required if, over the last 12 months, the “taxable supplies” have exceeded the VAT registration threshold.
For the current tax year, the VAT registration threshold is £85,000. The figure needs to be calculated on a rolling basis, so you’ll need to monitor your taxable turnover for a rolling 12-month period, not just the current tax year, the last financial year or the calendar year. So, you will monitor the turnover for April 2022 – March 2023. The next 12-month period will be May 2022-April 2023 – the first month dropping off and the next month being added on.
There are penalties for late registration and other implications too! Watch those figures closely!.
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