Advice Centre

Get Inspired! Check the latest industry expertise and read insider tips from our vetted tradespeople.

Review a Trade

Have you completed a project recently? Let your tradesperson know how they did.

Search For A Trade

We interview and vet all our tradespeople to ensure they meet our high standards.

Trade Advice Centre

Grow your business! Check out top tips and expert advice for boosting your reputation online.

Join Checkatrade

Join us and benefit from the millions of potential customers who use Checkatrade to find reliable tradespeople.

Login to Your Account

Edit your profile, view callback requests and ask for feedback from customers.

Should I Become VAT Registered?

May 7, 2019

Only when your business exceeds a turnover of £85,000 do you have to become VAT registered. However, some companies do decide to register for VAT before they hit this threshold. Here we explore the pros and cons.

What are the benefits of becoming VAT registered?

Many companies decide to register for VAT before they hit the legal threshold, as this allows them to reclaim the VAT on company purchases. There are savings to be made on expenses such as a work laptop or mobile phone, workwear and even your daily sandwich, as the VAT you pay can be re-claimed against VAT charged to clients.

Some also see it as a mark that the business is performing well; and register for VAT to emphasise to potential customers that they are a professional operation.

What are the downsides to becoming VAT registered?

For those who find admin a chore, being VAT registered when you don’t need to may not be for you. If you take the plunge you’ll need to add VAT to all your client invoices and keep all your VAT invoices and receipts for any company expenses. You’ll also have to submit a quarterly or annual VAT return.

If you’re regularly up against non-VAT registered companies when you quote for jobs, you might want to stay that way too, in order to remain competitive.

Grow your business

Join Checkatrade today

If I decide to register, what do I need to do?

VAT registration can be completed online via the GOV.UK’s website, or by using the paper form entitled ‘VAT1’. In order to make the application as efficient as possible, it’s important to have a number of business documents to hand before you begin:

  • Your business’ ten-digit ‘Unique Tax Reference’, which is first generated when registering to pay Corporation Tax
  • Your business’ bank account details.
  • Your company number and registered address.
  • Details of any associated businesses from the past two years.

Can I Reverse My VAT Registration?

It is possible to reverse your registration if you’re under the threshold, but it can be difficult. That’s why it’s important to consider if registration is the right move before embarking on the registration. If you’re above the £85,000 threshold then it’s impossible to reverse your registration.

For more information about VAT registration, please visit:

  • Was this Helpful?
  • YesNo

Search through our 39,000 recommended, vetted and monitored trades and service providers for free

Search now

More in this category

TradeTrade News

New trade start up: Everything you need to know about setting up a business

As a start up, navigating the world of business is a daunting task. In the trade sector, standing out from the crowd is a matter of risk assessing, forward planning and laying the groundwork for success. ‘How to start up a business?’ is something every budding entrepreneur types into a search engine at least once....

Continue reading

TradeTrade News

Dealing with the professional non-payer

The ‘professional non-payer’ is an unfortunate truth in the world of trade, and it’s crippling for small businesses. The scenario goes a little something like this: A tradesperson agrees to carry out some work for a client. They go in and complete the job with no issues raised. The tradesperson sends over an invoice, but...

Continue reading
Use Instagram to showcase your business

TradeTrade News

How to use Instagram to showcase your work

Did you know that 200 million Instagram users visit at least one business profile daily? Whatever trade you work in, having an Instagram account to showcase your work will help to raise awareness of your business and promote your services. It will also boost your credibility and show potential customers that you’re a trustworthy professional...

Continue reading