VAT threshold and registration planning
Crossing the VAT threshold without preparation can create pricing and cashflow issues quickly.
Track rolling turnover monthly so you can see threshold risk early. Waiting until the last minute can force rushed decisions about prices, invoicing, and systems.
If your business is close to threshold, test pricing scenarios now and decide how VAT would affect your margins and customer expectations.
Preparation is mostly operational: invoice templates, accounting workflow, and clear communication with clients.
Key points
- Monitor rolling turnover, not just tax-year totals.
- Run pricing scenarios before registration is required.
- Update invoicing and bookkeeping processes in advance.