11/09/2026
Sometimes it helps to register for VAT even if you are below the registration threshold (Annual sales of £90k)
Voluntary VAT registration — a real example from this week
Just helped a client voluntarily register for VAT — here's why it made sense for them:
✅ They've got a large capital expenditure coming up, and registering now means they can reclaim the VAT on it.
✅ Their customers are mostly VAT-registered businesses too, so charging VAT isn't a downside — those customers can reclaim it themselves.
✅ On your first VAT return, you can also claim back VAT on goods still in use in the business that you bought in the last 4 years — so it's not just about future spend.
The result: real cash back on a big spend, with minimal impact on pricing for their customer base.
👉 If you're about to make a big purchase and most of your customers are VAT-registered, it's always worth running the numbers worth running the numbers on registering early.