Getting close to the VAT registration threshold — what counts towards it?

Good that you're watching this — it's a rolling 12-month period, not the tax year, so you need to check your turnover at the end of every month. The £90,000 counts your taxable turnover only, meaning sales that would be subject to VAT — exempt sales don't count towards it. Once you go over in any 12-month period, you must register within 30 days, and the registration takes effect from the day after that period. Penalties apply if you register late, so it's worth keeping a simple monthly running total. If you're right on the edge, many businesses register voluntarily a little early to get the admin out of the way.