You have one calendar month to register for VAT if your ‘vatable’ income from services you have provided for the previous 12 months has exceeded the VAT threshold limit (currently £82,000 as at July 2015).
Your ‘vatable’ income is the income from services you provide that is subject to standard, reduced or zero rated VAT. You do not include any services that are exempt from VAT or that are outside the scope of VAT in the income calculation. What income should and shouldn’t be included will depend on your legal status, e.g. a not for profit club’s membership income is exempt from VAT and therefore would not be included in the ‘vatable’ income calculation.
It is important to note that the check to see if the limit has been exceeded must be done at the end of each calendar month, not just at the end of a financial year. Once you have exceeded the limit, you have one calendar month to register for VAT – there are significant penalties for registering late.
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