Do I need to register for VAT as a sole trader?

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Transcript

Do I need to register for VAT as a sole trader? Only if your taxable turnover goes over £90,000 in any rolling 12 months, or you expect it to in the next 30 days alone. That was the threshold in October 2026. Below it, registering is your choice. Turnover. GOV.UK says taxable turnover is the total value of everything you sell that is not VAT exempt or out of scope. It is your sales before any costs come off. Any 12 months. You check your total for the last 12 months at the end of every month, not just at 5 April. Yes. GOV.UK allows voluntary registration, for example if you want to reclaim VAT on business costs. You must then charge VAT and pay HMRC the VAT you owe from the date you are registered. Read the full answer, with every source, at rightotax.co.uk.

Voice and visuals made with automated software, including AI.

Read the full answer, with every source

The one-minute version

Transcript

Do I need to register for VAT as a sole trader? Only if your taxable turnover goes over £90,000 in any rolling 12 months, or you expect it to in the next 30 days alone. That was the threshold in October 2026. Below it, registering is your choice. Turnover. GOV.UK says taxable turnover is the total value of everything you sell that is not VAT exempt or out of scope. It is your sales before any costs come off. Read the full answer, with every source, at rightotax.co.uk.

Voice and visuals made with automated software, including AI.

This is general information to help you understand the rules. It isn't tailored to your circumstances, so check your own position before acting on it.

Righto Tax is a trading name of NJG Consultancy Ltd, registered in England and Wales, company number 16095900. Registered office: Jubilee House, East Beach, Lytham St Annes, FY8 5FT.