Applying yourself through HMRC
GOV.UK says you must register if your taxable turnover for the last 12 months goes over £90,000, or you expect it to go over £90,000 in the next 30 days. If you have gone over, you must register within 30 days of the end of the month when you went over. If you expect to go over in the next 30 days, you must register by the end of that 30-day period.
You apply using HMRC's online service. You need to sign in, and if you do not have sign-in details you can create them the first time. You can save your answers and come back later. You can also ask HMRC for the VAT1 paper form.
After registration HMRC posts your 9-digit VAT number, the date your registration starts, and details about your first VAT return. Applying yourself costs nothing. The trade-off is that you answer every question alone, including the identity and business questions HMRC asks.
Using SimpleFilings
SimpleFilings charges a £4.99 service fee per filing. There is no subscription. HMRC charges nothing for VAT registration, so there is no government fee to add.
You tell us about the company: its UTR, what it does, its address, when it started or plans to start trading, and why it is registering. We check your answers, ask for any identity or tax-history information HMRC needs, and prepare the registration. HMRC then sends your VAT number and start date. Registration is not instant.
The service does not include VAT returns, bookkeeping, payment of VAT or tax advice on special arrangements. Extra identity checks and authorising us with HMRC may be needed before submission. It is a filing service, not an accountant.
Paying a fuller service or an accountant
1st Formations lists VAT registration at £69.99 + VAT for limited companies. Its page says its team prepares and submits the application, a VAT expert can help with application questions, it gives guidance on opening a Government Gateway account, and HMRC sends the VAT number and certificate by post. It says UK VAT registration typically takes 30 to 40 days, but can often take longer.
An accountant can do something a filing service does not. They can advise on whether you must register or should register voluntarily, on the right registration date, and on VAT schemes such as flat rate or annual accounting. If you are unsure about any of that, advice may be worth more than the saving.
Total cost worked example
A limited company has gone over the £90,000 threshold and needs to register. HMRC's fee is £0 on every route.
- Apply yourself: £0 service fee + £0 HMRC fee = £0.
- SimpleFilings: £4.99 service fee + £0 HMRC fee = £4.99.
- 1st Formations: £69.99 + VAT (£83.99) + £0 HMRC fee = £83.99.
- Accountant: ask for a fixed quote that says what advice is included.
Who each option suits
- Apply yourself: you are confident with HMRC online services and your case is simple.
- SimpleFilings: a limited company that knows it needs to register and wants its answers checked at a low fixed fee.
- A fuller service: you want a team to submit it and a VAT expert to answer application questions.
- An accountant: you need advice on voluntary registration, the start date or which VAT scheme to use.
When another option may suit you better
- If you are happy using HMRC's online service yourself, applying directly costs nothing.
- If you are a sole trader, SimpleFilings' VAT registration is for limited companies, so apply yourself or use an accountant.
- If you want a team to prepare and submit the application, a VAT expert to answer application questions, or guidance on setting up a Government Gateway account, 1st Formations lists all three in its £69.99 + VAT service.
- If you need advice on voluntary or compulsory registration, the registration date or VAT schemes, an accountant can give it. A filing service does not.