The turnover limit which determines whether a person must be registered for VAT is currently £85,000. This means that a person will have to apply for registration if: – at the end of any month, the value of the taxable supplies made in the past 12 months or less has exceeded £85,000; or
– at any time there are reasonable grounds for believing that the value of the taxable supplies to be made in the next 30 days alone will exceed £85,000.
Ignore sale of capital items and exempt income when calculating the turnover.
If at the end of any month, a person’s taxable turnover in the past 12 months or less exceeds £85,000 but Customs & Excise are satisfied that it will not exceed £83,000 in the next 12 months, that person will not have to be registered.
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