UK raises 2014/5 VAT registration threshold to £81,000

Wed 19th Mar 2014

The UK Chancellor, George Osborne, announced today the UK VAT registration threshold will rise from £79,000 to £81,000 from April 2014.

This represents the level of annual sales a UK company or sole trader can make before they must register for VAT, and charge UK VAT at 20% on taxable supplies of goods or services.  The deregistration threshold has also been raised from £77,000 to £79,000 per annum.

Foreign companies providing VAT supplies in UK

Companies that are UK non-resident still face nil VAT registration threshold if they are required to VAT register as a non-resident trader because of their UK activities (e.g. holding stock in a warehouse for re-sale to local customers).

The non-resident UK VAT threshold used to £70,000, but was reduced to nil in 2012 following an intervention by the European Commission.  This basis for a nil registration for non-residents is that they should already by VAT registered in their home country, and therefore over their local VAT registration threshold.