I have a question about taxable revenue for VAT purposes. If my ‘B2C’ (business to customer) business reaches the VAT registration threshold of £85,000, does my taxable revenue then fall to £70,833 on registration, i.e., £85k = £70,833 plus VAT? If so, do I have to remain registered for VAT or can I wait until the revenue is £102k, i.e., £85k plus VAT? 

Arthur Weller replies:  

If your business reaches the VAT registration threshold of £85,000, it means that you have to register for VAT and start adding VAT at 20% to what you invoice your customers. So you need to issue them with a VAT invoice, and instead of charging your customer £100, you will now need to charge £120. Your taxable revenue does not fall; it stays at £85,000.