Industry News - 14th February 2023
As part of the Autumn Statement 2022, it was confirmed that the taxable turnover registration and deregistration thresholds will be frozen at the current rates until 31 March 2026.
Currently the taxable turnover threshold that determines whether businesses should be registered for VAT is £85,000 and the threshold that determines whether businesses can apply for deregistration is £83,000.
Businesses are required to register for VAT if they meet either of the following two conditions:
- At the end of any month, the value of the taxable supplies made in the past 12 months or less has exceeded £85,000; or
- At any time, there are reasonable grounds for believing that the value of taxable supplies to be made in the next 30 days alone will exceed £85,000.
The registration threshold for bringing goods into Northern Ireland from the EU is also £85,000.
Businesses with no physical presence in the UK may also have a liability to be VAT registered in the UK if they supply any goods or services to the UK (or are expected to in the next 30 days).
Contact us if you have any questions on VAT.
More information on VAT thresholds is available on gov.uk