United Kingdom · Sole traders & freelancers

VAT for freelancers: do you need to register?

Before you worry about invoice fields, there's an earlier question: are you even required to charge VAT yet? Here's the threshold, the timeline, and what changes on your invoices either way.

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The £90,000 threshold

You must register for VAT once either of two tests is met:

  • Backward-looking: your taxable turnover for the past 12 months — any rolling 12-month period, not just the tax year — goes over £90,000. You must register within 30 days of the end of the month you went over it; your VAT-registration date is the first day of the second month after that.
  • Forward-looking: you expect your taxable turnover to go over £90,000 in the next 30 days alone — for example, a single large contract. You must register by the end of that 30-day period; your VAT-registration date is the date you realised, not the date turnover actually crosses the threshold.

Below both tests, registering is optional — HMRC calls this voluntary registration. Freelancers sometimes do it anyway to reclaim VAT on business purchases, or because most of their clients are VAT-registered businesses who'd rather see VAT itemised.

What changes once you register

  • You must charge VAT on taxable sales and show it separately on your invoices — HMRC is explicit that "£600 including VAT" isn't enough; it has to be broken out, e.g. "£500 + £100 VAT = £600".
  • For a sale to another VAT-registered business, you must issue a VAT invoice showing your VAT number — see our full UK VAT invoice guide for exactly what a full VAT invoice needs, field by field. Selling to a non-VAT-registered customer doesn't require a VAT invoice, though many businesses issue one anyway.
  • You can start reclaiming VAT on VAT-registered business purchases.
  • You take on ongoing VAT return reporting — usually quarterly.

Before you register

Not being VAT-registered doesn't mean you can skip invoicing properly — it means a different, simpler document:

  • Don't add VAT, and don't show a VAT number.
  • HMRC doesn't technically require an invoice for every sale, but in practice you should issue one anyway — with a unique identification number. A VAT invoice specifically needs a sequential number from one or more numbering series that uniquely identifies it (gaps are fine if you keep the cancelled or spoiled invoice on file, or can otherwise explain the break); a general invoice just needs to be unique.
  • Everything else a professional invoice needs — your details, a clear description, the amount, payment terms — still applies; VAT is the one thing that's different.
  • Keep records of everything you invoice for at least 5 years (6 years once you're VAT-registered).

Which template to use, before and after

This generator's Generic template prints a plain "Invoice" with an editable tax field and no VAT assumptions — a reasonable fit before you're registered. Switch your Business Profile to the United Kingdom · VAT template once you register, and every new invoice picks up the VAT number field, the 20% VAT default, the tax-point field, and the "VAT invoice" heading automatically. The generator doesn't know your registration status — that's always your call — but the two templates match the two states cleanly.

Not registered yet? Start with the generic template — free, private, no sign-up — and switch templates the day your registration goes through.

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Frequently asked questions

I'm under £90,000 — can I register for VAT anyway?
Yes, voluntary registration is allowed below the threshold. It's mainly worth it if you want to reclaim VAT on business purchases, or most of your clients are VAT-registered businesses. Once you register, the same rules apply as if you'd been required to — you must charge VAT and file VAT returns.
What happens if I register late?
You're still liable for VAT on sales from the date you should have registered, even if you didn't charge your clients VAT at the time — plus you may face a penalty for late registration.
Do I need to issue invoices if I'm not VAT-registered?
HMRC doesn't strictly require an invoice for every sale if you're not VAT-registered, but it's standard practice to issue one anyway, with a unique identification number, for your own records and your client's.
Can I charge VAT before I'm registered?
No — you can't show VAT on an invoice or call it a VAT invoice until your registration is confirmed and you have a VAT number, even if you know you're above the threshold and registration is in progress.
Does the generator know if I should charge VAT?
No — it has no way to know your turnover or registration status. You choose the template (Generic or United Kingdom · VAT) and the tax treatment on each invoice; the tool only does the arithmetic and prints your selection.
Is my data sent anywhere?
SimpleTaxInvoice has no servers that receive your data — your business details, clients and invoices are stored in your browser on your device by default. Data leaves only through your own explicit actions: downloading or sharing a PDF, opening an email or WhatsApp draft, exporting a backup, or connecting your own Google Drive.
Official sources

Related: already registered and want the full field-by-field breakdown? See our UK VAT invoice guide, or head to the VAT invoice generator page.

This guide is general information, not tax advice, and may not reflect the latest rules. Whether and when you need to register is your responsibility to determine — check the current GOV.UK VAT guidance or an accountant for your situation.