In this section:
- When to register for UK VAT
- How to register for VAT
- Register for VAT now on the HMRC website
- How to sign up to use VAT online services
- Taking over a business and VAT registration
- Group, division or joint venture VAT registration
- Appointing someone to deal with your VAT affairs
- Late VAT registrations
- Waiting for VAT registration and what to do in the meantime
- Purchases made before VAT registration: reclaiming the VAT
Late VAT registrations
If you have to register for VAT but you don't, you will still be liable for the VAT due from the time that you should have registered. You may also be penalised financially. Your penalty will depend on how much VAT is payable, and how late your registration is.
On this page:
- Reminder: when you must register for VAT
- If you register for VAT late or do not register
- Reasonable excuses for late VAT registration
- What is not a reasonable excuse for late VAT registration
- What are mitigating circumstances for late VAT registration
- What to do if you are penalised for late VAT registration
Reminder: when you must register for VAT
You must register for VAT if your turnover of VAT taxable goods and services supplied within the UK for the previous 12 months is more than the current registration threshold of £68,000, or you expect it to go over that figure in the next 30 days alone. You must also register for VAT in various other circumstances.
Find more information about when you must register for VAT
If you register for VAT late or do not register
If you do not register for VAT at the correct time, you will still be liable for all VAT due from the time that you should have been registered.
This means that you will have to pay HM Revenue & Customs (HMRC) for VAT on your sales from the date you should have been registered, even though you have not charged your customers VAT.
You may also be penalised financially.
Reasonable excuses for late VAT registration
You may not be penalised for registering late if you can show HMRC that you had a 'reasonable excuse'. Based on your particular circumstances, a reasonable excuse could be:
- compassionate circumstances, for example where you are totally responsible for running your business and you or a family member was seriously ill
- where you have taken over a business as a going concern and have sent VAT returns and paid tax on time under the old VAT registration
Get information about registering for VAT when you buy a business
Get information about products and services where VAT is charged
Find out whether you are employed or self-employed (PDF 60K)
What is not a reasonable excuse for late VAT registration
HMRC will not accept excuses such as:
- you made a genuine mistake
- you were acting honestly and in good faith
- you cannot afford to pay the tax or the penalty
- you relied on someone else to register you for VAT
What are mitigating circumstances for late VAT registration
If you don't have a reasonable excuse, you may still be able to reduce your late registration penalty if you can show mitigating circumstances in your case. 'Mitigating circumstances' means that HMRC can look at the reasons why you were late registering for VAT. Depending on what the reasons are, your penalty might be reduced.
HMRC will not accept reasons such as the following for mitigating circumstances:
- you were acting in good faith
- you cannot afford to pay the tax or the penalty
- that little or no tax has been lost
What to do if you are penalised for late VAT registration
In general, if you have been penalised you should pay up. However, if you disagree with being penalised or with the amount of your penalty, you may appeal.
