• your turnover for the previous 12 months has gone over a specific limit - called the 'VAT threshold' (currently £68,000)
• you think your turnover will soon go over this limit

The threshold changes - usually once a year, announced in the Budget - check your turnover against the current threshold at http://www.hmrc.gov.uk/index.htm > businesses and corporations > VAT.

 

 

 

VAT registrations and de-registrations provide an indicator of business start up's and closures and are used as an indicator of local economic health, including levels of entrepreneurship. 

The latest available data, for year ending 2007 shows an annual increase in total stock at year end, to 7,640, with an additional 310 businesses ( a 4.3% increase.)  During the previous year, 2005 - 2006, the number of VAT registered businesses rose by only 2.1 % (150) although between 2004 - 2005, the rate of growth was more than double, at 5.4% - indicating a dip in the rate of business formation and growth, over the 3 years. 

 

Over the longer term the trend has remained one of growth; during the decade 1996 - 2006 the number of VAT registered businesses increased by 20%, from just under 6,100 to 7,330. This increase has continued through to 2007, with total stock at the end of year being 7,640.

 

VAT registrations, Harrogate District	1996	2001	2005	2006	2007
Registrations	565	535	610	625	710
De-registrations	460	465	450	475	460
Stocks at end of year	6,085	6,560	7,180	7,330	7,640
Net annual change	+105	+70	+160	+150	+330

 

For information on VAT registrations and de-registrations in the Harrogate district and other local authorities in the region, see Progress in the Leeds City Region, and Progess in York and North Yorkshire (March 2009).