UK VAT registration in 2027: thresholds, MTD and common mistakes
When you must register, when you should register voluntarily, and the MTD traps that catch small businesses out.
VAT registration is tested against taxable turnover on a rolling 12-month basis, not only at a financial year end. Check the current threshold and deadlines before acting.
Voluntary registration
If your customers are VAT-registered businesses, registering early may allow input VAT recovery. If your customers are consumers, assess the pricing effect carefully.
Making Tax Digital
VAT-registered businesses generally need compatible software and digital links between their records. Confirm current exemptions and requirements with HMRC.
Common traps
Review the rolling 12-month test, services bought from overseas suppliers, and blocked input tax such as certain entertainment costs.
Official sources
Last checked against the sources above: 27 September 2026.
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