Freelancing Support

Q. Should I voluntarily register for VAT?

A. It depends - let's explore the pros and cons.

If you expect to make over £90,000 in turnover within a 12 month period, you must register for VAT.

If you’re not expecting to make over the threshold, you can voluntarily register for VAT - but there are pros and cons to consider.

Downsides of Voluntary Registration:

Upsides of Voluntary Registration:

Summary

If you feel you’ll be getting close to the £90k threshold within a 12 month period, or are planning on investing in to a number of larger business purchases, such as laptops, software and subscriptions, it’s worth considering voluntary registration for VAT.

If you’re not sure, you can always register for VAT when you hit the threshold.

As always, we recommend speaking with your accountant before making any decisions, and get their advice on whether voluntary registration is right for you.

Featured Resources

Support from the ecosystem

A quick guide to VAT when you’re self-employed
What is VAT, do I need to register, how to charge VAT, and VAT on selling services outside the UK
Tide
VAT guide for the self-employed
Comprehensive guide on the registration process, submitting returns, benefits of VAT registration, the different schemes, and common questions
Crunch
Register for VAT
Official guidance and registration for VAT
gov.uk
Disclaimer

While we strive to ensure the accuracy of the information on this website, it is provided for general informational purposes only and should not be construed as legal or financial advice. We disclaim any liability for any actions taken or not taken based on the content of this website or any third-party content referenced herein. Users are advised to seek independent legal and financial advice tailored to their specific circumstances.

Last Updated:

Answering questions
you didn't know to ask.

Subscribe for free updates to content and suggestions of topics you might not have even thought about asking yet.

Leave us your email address, and we'll keep you supported.

Subscribe

Freelancing Support is the impartial and independent guide to independent work. We help freelancers find support, navigate self-employment and work well.