ou must register for VAT if your taxable turnover (sales that aren’t VAT-exempt) goes over £90,000 in a rolling 12-month period (as of 2024–2025).
But even if you’re below the threshold, you can register voluntarily. Why would you do that?
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If your clients are VAT-registered businesses, they can reclaim the VAT you charge — meaning it doesn’t affect their costs.
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You can reclaim VAT on your own business expenses, such as laptops, software subscriptions, travel, or office rent.
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It may also enhance your business reputation, especially in B2B sectors, because it gives the impression you’re a more established company.
However, if your clients are individuals or small businesses who can’t reclaim VAT, registering may make your prices appear higher. An accountant can help you assess what’s best for your situation.
