Most UK businesses register for VAT online. You sign in to HMRC with a Government Gateway ID and use the VAT registration service. Paper form VAT1 is only used in a few exceptions now, not as a normal option.
The VAT registration threshold is £90,000 of taxable turnover. This guide explains the process, not when you have to do it. For the rules on crossing the threshold, see our guide to the VAT registration threshold.
How Do You Register for VAT with HMRC?
Register online through HMRC’s VAT registration service. Sign in with your Government Gateway ID, or create one first. Enter your business details, turnover figures and start date. HMRC will post your VAT number and registration certificate once it approves the application.
Here’s the order of the steps.
- Gather your business details first. The list changes with your business type.
- Go to HMRC's online VAT registration service and sign in.
- Create a Government Gateway ID if you do not already have one.
- Answer the questions about your business and your turnover.
- Give the date you crossed the threshold, or the date you want to register from.
- Say whether you want to join a VAT scheme.
- Check your figures, then submit.
You do not have to finish the application in one go. HMRC lets you save it and come back later, which is helpful because one wrong turnover estimate can slow everything down.
What Information Do You Need to Register for VAT?
The list depends on your business type. A limited company needs its company registration number and UTR. A sole trader or partnership needs a National Insurance number and photo ID. Both need bank details, turnover figures and a 12-month estimate of taxable turnover.
A limited company needs:
- company registration number
- business bank account details
- Unique Taxpayer Reference (UTR)
- annual turnover figures
- an estimate of taxable turnover for the next 12 months
- Self Assessment, Corporation Tax and PAYE details
A sole trader or partnership needs:
- National Insurance number
- an identity document, such as a passport or driving licence
- bank account details
- UTR, if you have one
- annual turnover figures
- an estimate of taxable turnover for the next 12 months
- Self Assessment return, payslips and P60 details
HMRC checks this information against the records it already holds, so check every figure before you submit. A wrong turnover number can delay your application.
How Long Does VAT Registration Take?
HMRC does not publish a fixed VAT registration time. It provides a tool that shows current reply times and updates it every week. Many accountancy sites still quote 10 working days as if it is guaranteed. Check the live figure before you promise a customer a VAT number.
Use HMRC's tool for checking reply times to see the current wait time. It covers VAT, Self Assessment and Corporation Tax.
Postal applications usually take longer than online ones. HMRC says this on its own VAT1 guidance page.
Plan for the gap. Your VAT duties start from your effective date of registration. HMRC's VAT registration rules sets that date, not you. It can be weeks before your VAT number actually arrives.
What Do You Do About Invoices While You Wait for Your VAT Number?
You cannot show VAT on an invoice unless you have a VAT number. So invoice the higher total instead. Add 20% to the agreed price and bill the gross amount. Once your number arrives, reissue the invoice with VAT broken out.
HMRC gives a worked example. You agree a £100,000 contract on 1 May. Your effective date of registration is also 1 May. You tell the customer you will add 20%. You invoice £120,000.
When your VAT number arrives, you reissue the invoice. It now shows £100,000 plus £20,000 VAT. Your customer does not pay any more. They reclaim the £20,000 on their next VAT return.
Most guides leave this part out, but it is where mistakes get expensive. Charge £100,000 flat and the VAT comes out of your margin.
What Happens After HMRC Registers You for VAT?
HMRC sends you a 9-digit VAT number. You must put it on every invoice you issue. You also get your effective date of registration and your first return date. HMRC registers you for Making Tax Digital at the same time.
The paperwork comes by post. Set up your VAT online account as soon as the number arrives.
It takes four steps. Sign in to your business tax account. Select ‘Add a tax, duty or scheme now’. Choose ‘VAT and VAT Services’. Then pick the service you need from the list.
You can charge VAT and reclaim it from your effective date of registration, not from the day the certificate lands.
Your first return date is on the certificate. Most businesses then file every quarter. You file through MTD-compatible software, not a form on the HMRC website.
The first return is usually the awkward one because it often covers a longer period than the ones after it. We handle VAT return submission from that first period onwards.
When Do You Have to Register for VAT by Post?
Online registration is the default for almost every UK business. Paper form VAT1 is only for a small number of exceptions. You cannot just download the form and post it. You need to call the VAT general enquiries helpline, and HMRC decides whether to send one.
The postal route applies to:
- a limited liability partnership registering as a VAT group representative member
- a business registering its divisions under separate VAT numbers
- an overseas partnership
- a local authority, parish or district council
- an insolvency practitioner registering a business
- anyone applying for a registration exception
HMRC also allows paper applications on access grounds. Age, health, disability, location and no internet access all count. Religious objection to computers also counts.
Some paper applications need extra forms. Form VAT98 is for the Agricultural Flat Rate Scheme. Form VAT50-51 is for a VAT group. Form VAT5EXC is for a registration exception.
Can You Ask HMRC Not to Register You After a One-Off Spike?
Yes. HMRC calls this a registration exception. You apply when one large job pushes your turnover over £90,000 once. You have to show HMRC that your turnover will stay under the threshold over the next 12 months. HMRC then writes back with its decision.
This is meant for genuine one-off spikes: a single big contract or a one-time asset sale, not a business that is just growing.
You apply on paper. Ask for form VAT1, then send form VAT5EXC with it. There is no online route for a registration exception.
Do not mix this up with exemption from registration. That is for businesses that mainly sell zero-rated goods. If HMRC rejects your exception request, it will register you for VAT anyway.
Should You Pick a VAT Scheme When You Register?
The application asks whether you want to join a VAT scheme. You can decide later, but choosing one when you register saves work. Three schemes cover most small businesses in the UK. Your turnover, margins and payment terms will point you to the right one.
A scheme changes your cash flow, not just your paperwork. Cash accounting means you pay VAT after your customer pays you. Flat rate means you apply one percentage to gross turnover instead of working VAT out line by line.
Each scheme has its own entry limit and trade-offs. Our guide on which VAT scheme is right for your business breaks them down.
Can an Accountant Register for VAT on Your Behalf?
Yes, and most growing businesses do exactly that. You appoint the accountant as your HMRC agent first, then they submit the registration and deal with HMRC for you. You still open your own VAT online account when the number arrives.
Registering for VAT costs nothing. HMRC does not charge a fee at any point.
An accountant earns their fee through the decisions, not the form. Which scheme to choose. Which effective date to use. Whether to register voluntarily before you have to.
Written by Raqeeb Marzook, ACCA, Manager at DASA Accountancy.
This article is a general guide to UK VAT registration. VAT rules and thresholds change, so speak to a qualified accountant before you register or choose a scheme.
Registering is the easy part. The quarterly returns come after that. Talk to us about DASA's VAT service. Get a quote and we will send over our current pricing.
FAQs
How do you register for VAT with HMRC?
You register online through HMRC’s VAT registration service. Sign in with your Government Gateway ID, then add VAT to your business tax account. Fill in your business details, turnover figures and start date. HMRC posts your VAT number and registration certificate to you after approval.
What information do you need to register for VAT?
A limited company needs its company registration number, UTR, bank details, turnover figures and a 12-month taxable turnover estimate. A sole trader or partnership needs a National Insurance number, photo ID, bank details and the same turnover figures. Both give Self Assessment and PAYE details.
How long does VAT registration take?
HMRC does not publish a fixed processing time. It runs a tool that shows current reply times for VAT, updated every week. Postal applications take longer than online ones. Check the live figure before you promise a customer a VAT number.
How much does it cost to register for VAT?
Registering for VAT costs nothing. HMRC charges no fee at any stage of the application. You only pay if you appoint an accountant to handle the registration and the scheme decisions for you.
Can you invoice before your VAT number arrives?
You cannot show VAT on an invoice unless you have a VAT number. Raise the invoice at the gross figure instead, adding 20% to the agreed price. Once your number arrives, reissue the invoice showing the VAT broken out. Your customer pays nothing extra.
When do you have to register for VAT by post?
Paper form VAT1 covers a short list of exceptions. These include VAT groups, overseas partnerships, local authorities, insolvency practitioners and registration exception applications. You ring the VAT general enquiries helpline to request the form, and HMRC decides whether to send one.