VAT returns and registration for businesses in Surrey
The threshold is a rolling twelve months, not your financial year. This is the single most common misunderstanding we see — and the most expensive one.
A good spring can put you over in July even though your year end is December.
The £90,000 threshold, and how people trip over it
You must register for VAT once your taxable turnover exceeds £90,000 in any rolling twelve-month period — not in your accounting year, and not in the calendar year. It is a running total, checked every month.
You then have 30 days from the end of the month you crossed it to tell HMRC, and registration takes effect from the first day of the second month after. Miss it and you owe VAT on sales you already made without charging it, which comes straight out of your margin rather than your customer's pocket.
The deregistration threshold is £88,000 if turnover falls back — worth knowing if you have had a quiet year.
Returns, and when they are due
| Item | Position |
|---|---|
| Standard rate | 20% |
| Registration threshold | £90,000 rolling twelve months |
| Deregistration threshold | £88,000 |
| Return and payment deadline | 1 calendar month and 7 days after the period ends |
| Making Tax Digital | Mandatory for all VAT-registered businesses, whatever the turnover |
Spreadsheets are still allowed under Making Tax Digital, but they need bridging software to file. Paper is not an option.
Choosing the right scheme is where the money is
The right answer depends on how you invoice, how quickly you get paid, and how much VAT you reclaim on purchases. We work it out before you register rather than after — switching later is harder than choosing correctly at the start.
Standard accounting
You account for VAT on invoices raised, whether or not you have been paid yet.
Cash accounting
VAT follows the money. Protects cash flow if your customers pay slowly.
Flat rate
A single percentage of gross turnover. Simpler, and not always cheaper — it depends on what you buy.
Annual accounting
One return a year with instalments through it. Useful for steady, predictable businesses.
Registering voluntarily below the threshold can be worth real money if you sell mainly to VAT-registered businesses, and is usually a mistake if you sell to the public. It is worth twenty minutes before you decide, not after.
Schedule a 20 min Free Review with me.
I offer a review, not a sales call — which may or may not lead anywhere. Most people come away with two or three things worth far more than twenty minutes.
What we cover
- 01Whether you need to register yet, or not
- 02Which VAT scheme actually suits how you trade
- 03Your filing calendar for the next twelve months