XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks
Country Restriction: GB only
Risk Type: Tax Risk
Business Function: Bookkeeping
Overview
This XBert monitors your total turnover to identify if your UK business is approaching or has exceeded the threshold for mandatory VAT registration.
What it does
XBert checks whether your annual revenue has reached the VAT registration threshold in the UK. This alert is triggered if:
Your total taxable turnover for the previous 12 months exceeds the HMRC threshold (£85,000).
Your business is not yet VAT registered.
You’re expected to exceed the threshold imminently based on current patterns.
This helps ensure you don’t miss your obligation to register and potentially face penalties.
How it works
XBert continuously monitors revenue activity and compares your annual turnover to the current VAT threshold set by HMRC. If it determines that your business should be registered for VAT and it is not, it will raise this alert.
Example/Use Case
Barry is a sole trader who sells specialised car parts. By the end of May, his revenue for the year has reached £31,170. While this is below the threshold, XBert continues monitoring his activity monthly. When Barry’s revenue later exceeds £85,000, XBert triggers an alert to ensure he registers for VAT within the required 30-day window.
Accounting software
XBert integrates with:
Which countries it supports
United Kingdom only
Processes
This XBert is part of the Compliance category.
To action:
Click on the HMRC VAT registration page to review the requirements.
Assess your business turnover to confirm whether you need to register.
If required, follow the HMRC instructions to register.
Once completed, file the XBert to remove it from your dashboard.
Failure to register for VAT once required may result in having to pay VAT on past sales and potential penalties. Stay compliant by acting promptly.