How do I register for VAT as a sole trader?

You register online, signed in to HMRC, within 30 days of the end of the month your last 12 months' turnover went over £90,000, the threshold in October 2026. HMRC then posts your 9-digit VAT number.

This page is about the how. If you are still working out whether you have to register, start with do I need to register for VAT as a sole trader. A sole trader registers as an individual, which needs slightly different details from a limited company.

When to apply and when VAT starts

HMRC's VAT Notice 700/1 supplement describes £90,000 as the current registration threshold.

A worked example. An electrician checks her figures at the end of every month. At the end of November 2026, her last 12 months come to £91,200, the first time she has gone over. She must apply by 30 December 2026, and VAT applies to her work from 1 January 2027. Leaving it until February does not move that date: HMRC registers you from the date you were liable, whenever you tell it.

What you need to apply as an individual

GOV.UK lists what a sole trader needs to hand:

• your National Insurance number
• an identity document, such as a passport or driving licence
• your bank account details
• your Unique Taxpayer Reference (UTR), if you have one
• details of your annual turnover, and an estimate of your taxable turnover for the next 12 months
• information from your Self Assessment return, payslips and P60

You apply through HMRC's online service. You can save a part-finished application and come back to it. You can also ask an agent to apply for you, but you are still responsible for the information in it.

While you wait for your VAT number

Your number does not arrive the day you apply. HMRC checks the details first, and it sends the number, your effective date of registration and your first VAT return date by post.

VAT is still due on work you invoice from your effective date. You cannot show VAT on an invoice until you have the number, but you can put your prices up to cover it. GOV.UK's example is a £100,000 contract invoiced at £120,000, then reissued as a VAT invoice once the number arrives. VAT Notice 700/1 asks you to send VAT-registered customers their VAT invoices within 30 days of getting your number.

If you have heard nothing after 40 working days, the notice says to contact HMRC's VAT Registration Service.

Registering voluntarily

You can register below £90,000 if you are in business. Some trades do this so they can claim back the VAT they pay on business costs. You choose your registration date and can ask for it to be backdated by up to 4 years, and from that date you must account for VAT on your sales. Subject to the normal conditions, you can also reclaim VAT on goods bought for the business in the 4 years before you registered that you have not used up or sold, and on services from the 6 months before. Once HMRC agrees the date, it will not normally let you change it, so pick it carefully.

What this means for you

Once registered, three things change. First, your 9-digit VAT number goes on every invoice. Second, HMRC signs you up to Making Tax Digital for VAT, so you keep digital records and send a VAT return, usually every 3 months, through compatible software. The deadline to file and pay is usually 1 calendar month and 7 days after the end of each period. Third, what you charge depends on who you work for:

• householders pay VAT on your bill in the normal way
• VAT-registered contractors who pay you under the Construction Industry Scheme (CIS) usually get a bill for standard- or reduced-rated work under the domestic reverse charge, so they account for the VAT instead of paying it to you, unless they tell you in writing that they are an end user

Registering late is costly. GOV.UK says you must pay VAT on any sales since the date you should have registered, even if you never charged it, and you might have to pay a penalty as well.

Steps to register for VAT

1. At the end of each month, add up your taxable sales for the last 12 months.
2. If the total is over £90,000, note the month. Your deadline is 30 days after it ends.
3. Gather your National Insurance number, ID, UTR, bank details and turnover figures.
4. Sign in to HMRC and complete the online VAT application.
5. Raise your prices from your effective date, and tell regular customers VAT invoices will follow.
6. When your number arrives, set up your VAT online account, choose compatible software and reissue any invoices.
7. Decide whether the Flat Rate Scheme suits your trade before your first return.

VAT is separate from Making Tax Digital for Income Tax. Use the free MTD check to see when that starts for you, and the trades section for more guides for the building trades.