HMRC VAT Letters: Why Turnover Over £90,000 Doesn’t Always Mean You Must Register

HMRC is sending “One to Many” VAT letters to businesses whose reported turnover exceeds £90,000, encouraging them to check if they need to register for VAT.
VAT registration is required only if taxable turnover (not total turnover) exceeds £90,000 on a rolling 12-month basis.
Taxable turnover includes standard, reduced, and zero-rated supplies, but excludes VAT-exempt and outside-scope income.
Businesses must notify HMRC within 30 days if their taxable turnover exceeds the threshold, or if they expect to exceed it in the next 30 days.
The letters aim to prompt businesses to reassess their VAT position and correct errors voluntarily, not to initiate a compliance check.

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.