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HMRC reminds businesses to register for VAT on time

Roger Eddowes

CREATED BY ROGER EDDOWES

Published: 25/06/2026 @ 09:00AM

#HMRC #VATregistration #VATthreshold #taxcompliance #businessadvice #smallbusinesses

HMRC is reminding businesses to check whether they need to register for VAT, especially when turnover is close to the VAT threshold. Some firms may still be outside the rules, so it pays to review the facts before acting ...

Businesses are reminded by HMRC to register for VAT on time to avoid penalties and ensure compliance with tax regulations

Businesses are reminded by HMRC to register for VAT on time to avoid penalties and ensure compliance with tax regulations

HMRC's latest reminder is straightforward: if a business is approaching the VAT threshold, it should not ignore the letter or rush through the details before deciding whether to register for VAT. In practice, the message is about careful HMRC VAT checks rather than blind panic, because business taxes are rarely as simple as a single turnover figure.

A turnover figure above £90,000 does not always
mean VAT registration is required!

Some businesses have turnover that includes exempt income or supplies outside the scope of VAT, which can make turnover appear higher than it really is. Other businesses may be looking at a period longer than 12 months, or may fall within a registration exception because their sales are mostly or wholly zero-rated.

In those cases, the business may not need to register for VAT at all.That is why a quick review matters so much.

A business that needs to register for VAT late can end up owing VAT on past sales, plus interest, and HMRC may also add a penalty. For tax compliance, that is a poor outcome, given that a brief check could have clarified the position earlier. HMRC's focus on non-registered businesses with higher turnover means the letter should be taken seriously but not dealt with hastily.

A sensible business will look at its taxable turnover, not just its headline turnover, and will also think about whether the threshold has only been crossed briefly. If the position is uncertain, getting advice can save time and money.

When the analysis shows the business must register for VAT, it should do so promptly to stay ahead of HMRC VAT issues and manage taxes effectively.

Until next time ...


ROGER EDDOWES
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If anything I've written in my blog post resonates with you and you'd like to discover more of my thoughts about when a business needs to register for VAT, then do call me on 01908 774320 and let's see how I can help you.

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#HMRC #VATregistration #VATthreshold #taxcompliance #businessadvice #smallbusinesses

About Roger Eddowes ...

Roger Eddowes 

Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.

Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.

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