The trader whose taxable turnover does not exceed a specified
limit does not need to register as a taxable person but the trader
may do so if they wish.
However, if the trader wishes to register they must satisfy HMRC that they make or intends to make taxable supplies in the course or furtherance his business.
The specified limit is subject to alteration. It is prescribed in paragraph 1, Schedule 1, Value Added Tax Act 1994 and is amended by Statutory Instrument (VAT (Increase of Registration Limits) Order), usually annually. For example, the limit below which registration was not required was increased to £61,000 from 1 April 2006.