With effect from 1 April, 2015 the VAT registration and de-registration thresholds are uprated as follows:
Registration threshold £82,000 (previously £81,000)
De-registration threshold £80,000 (previously £79,000)
For most small businesses it’s the historic turnover test that will determine when they are required to register for VAT. The trader must look at the value of taxable supplies made on a rolling twelve-month basis, or for new businesses since trading commenced. HMRC must be notified within 30 days of the end of the month in which the registration threshold was exceeded.
It is not enough to wait until your year end and your accountant informing you that you have exceeded the VAT threshold as you may face late registration penalties.
To help you, I have a spread sheet produced by one of my associations (the 2020 Group) that has been updated for 2015/16:
2020-VAT Registration Tool_2015-16 When the spreadsheet comes up you need to click on ‘Enable Editing’ and then ‘Enable Content’.
Speak to your accountant during the year if your not VAT registered and think your annual turnover is close to the threshold. It may be too late to avoid backdated VAT and penalties if you wait until you drop your books off after your year end.