VAT and registration for VAT

If a business makes taxable supplies within the UK, they must register for VAT if the value of those taxable supplies in any 12-month period exceeds the annual VAT registration threshold. The registration threshold for 2006-07 is £61,000.

A business may also register on a voluntary basis. Once you are required to register for VAT, or choose to register, you are a taxable person. As such, you must charge VAT on all your taxable supplies from the date of registration or from the date of becoming liable. You will be able to claim back input tax on your business purchases and expenses.

Registering for VAT gives more detailed information.