Last reviewed: November 2026
If your taxable turnover went over the £90,000 VAT threshold and you didn’t register on time, HMRC backdates your registration to when you should have registered. You then owe VAT on all your sales from that date, even though you never charged it to customers.
What it can cost
- The VAT itself: worked out as 1/6 of your VAT-inclusive sales if you can’t recover it from customers.
- A late registration penalty: a percentage of the VAT due, depending on how late you are and whether you told HMRC yourself.
- Interest on the late-paid VAT.
How to limit the damage
- Register as soon as you realise, and tell HMRC before it contacts you. This usually reduces the penalty.
- Ask business customers who are VAT-registered to pay the VAT on past invoices, by issuing VAT invoices.
- Reclaim VAT on costs you paid during the late period.
- Check whether the Flat Rate Scheme could reduce the VAT you owe.
The threshold test is a rolling 12 months, so check your turnover every month. See our guide to when you need to register for VAT.
Missed the threshold? Contact us quickly and we’ll handle HMRC for you. Ozvite sa nám.
Sources: GOV.UK – When to register for VAT.