Do I need to charge VAT?

Most small UK businesses are not VAT registered — and that’s completely normal. You only have to register for VAT once your taxable turnover crosses a threshold set by HMRC.

The £90,000 VAT registration threshold

You must register for VAT if:

• your VAT taxable turnover goes over £90,000 in any rolling 12-month period, or
• you expect it to go over £90,000 in the next 30 days alone.

The £90,000 figure has applied since 1 April 2024. Turnover means your total takings from VAT-taxable sales — not your profit.

You can also register voluntarily below the threshold, which some businesses do to reclaim VAT on purchases or to look more established.

If you’re not registered

If you’re under the threshold and haven’t registered voluntarily, you must not charge VAT and must not show a VAT number on your invoices. Your invoice simply shows your prices with no VAT added — and that is correct and compliant.

In the generator, turn the “I’m VAT registered” toggle off for a clean, no-VAT invoice.

If you are registered

Once registered you must charge VAT at the right rate, show your VAT number, and issue full VAT invoices that meet HMRC’s requirements. See What a VAT invoice must include.

Quick check

• Turnover under £90,000 and not voluntarily registered → no VAT.
• Registered (by choice or because you crossed the threshold) → charge VAT and follow the full-invoice rules.

Still unsure? Check the current guidance on GOV.UK or ask an accountant.