VAT Threshold for 2015-16 is increased

HMRC have increased the threshold for VAT registration to £82,000 for the year 2015-16.  It was previously £81,000.

If your turnover will reach this threshold over a 12 month period then you must register your business for VAT.  This equates to a monthly turnover of around £6,800.  You should keep a record of your turnover each month for a rolling 12 month period as you will have 30 days to register for VAT when you expect the total to go over £82,000.  Your rolling 12 month record can start at any month i.e. June to May, July to June, etc.

Your VAT taxable turnover will include all items or services you sell which are subject to VAT.  This will include zero rated goods and services but will exclude goods and services which are exempt from VAT.

You can voluntarily register for VAT before you reach this threshold and for many businesses it is advantageous to do so.