To be or Not to be .......
Do I need to register for VAT Registration?
As you are based in the UK and providing your services to a UK client, the answer is:
You must register for VAT if:
• your total VAT taxable turnover for the last 12 months was over £85,000 (the VAT threshold)
• you expect your turnover to go over £85,000 in the next 30 days
Taken from https://www.gov.uk/register-for-vat
You can choose to register for VAT if your turnover is less than £85,000 (‘voluntary registration’).
You must pay HMRC any VAT you owe from the date they register you.
If everything you sell is exempt from VAT, you do not have to register for VAT.
If you exceeded the threshold in the last 12 months
You must register if, by the end of any month, your total VAT taxable turnover for the last 12 months was over £85,000.
You have to register within 30 days of the end of the month when you went over the threshold. Your effective date of registration is the first day of the second month after you go over the threshold.
Between 10th July 2019 and 9th July 2020 your VAT taxable turnover is £100,000. That’s the first time it has gone over the VAT threshold. You must register by 30th August 2020. Your effective date of registration is 1st September 2020.
If you’re going to exceed the threshold in the next 30 days
You must register if you realise that your annual total VAT taxable turnover is going to go over the £85,000 threshold in the next 30 days.
You have to register by the end of that 30-day period. Your effective date of registration is the date you realised, not the date your turnover went over the threshold.
On 1st May, you arrange a £100,000 contract to provide services. You’ll be paid at the end of May. You must register by 30th May. Your effective date of registration will be 1st May.