XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks Online
Country Restriction: the United Kingdom only
Risk Type: Tax Risk
Business Function: Compliance
Overview
This XBert checks whether your UK business has reached the turnover level where registering for VAT becomes compulsory. If your revenue has crossed the HMRC threshold but you are not yet VAT registered, XBert flags it so you can register on time and avoid penalties.
What it does
XBert adds up your business revenue over the last 12 months and compares it to the UK VAT registration threshold of £90,000. It also checks the public company register to confirm your business is active and is shown as not VAT registered. If your turnover is over the threshold (or is on track to go over it) and you are not registered, XBert raises this alert.
How it works
XBert looks at your revenue posted in the rolling 12 months up to today and works out your taxable turnover excluding VAT. The alert fires in one of two ways:
Your actual revenue (excluding VAT) for the last 12 months is already more than £90,000; or
You have not been trading for a full 12 months yet, but your revenue so far, projected out across a full year, would exceed £90,000.
XBert only raises this alert when your business is shown as not VAT registered and its registry status is active (recorded as "Active" or "Open"). It deliberately leaves a business alone if it is already VAT registered, if the country is not the United Kingdom, or if the register shows the business as closed, dissolved or otherwise not active. If there is no matching record on the register, the alert is not raised.
Example/Use Case
Barry is a sole trader in Manchester who sells specialised car parts. He is not registered for VAT. Over the past 12 months his revenue (excluding VAT) climbs to £92,400, putting him above the £90,000 threshold. Because Barry is still showing as not VAT registered and his business is active on the register, XBert raises this alert. Barry registers for VAT through HMRC within the required window, avoids a late-registration penalty, and starts charging VAT on his sales. Once registered, he marks the XBert as resolved.
Accounting software
XBert integrates with:
Which countries it supports
The United Kingdom only.
Processes
This XBert is part of the Compliance business area.
To action this XBert:
Review your revenue for the last 12 months and confirm whether your taxable turnover (excluding VAT) has reached or exceeded the £90,000 threshold.
Check the HMRC VAT registration guidance to confirm your registration obligation and deadline.
If you are required to register, complete your VAT registration with HMRC and begin charging VAT on your sales.
Confirm your business is correctly recorded as VAT registered, and check that your company register details are up to date.
If you have genuinely not crossed the threshold (for example, a one-off or non-taxable item inflated the figure), confirm this with your accountant or bookkeeper.
Once the matter is corrected, mark the XBert as resolved to remove it from your dashboard.
Failing to register for VAT once it is required can mean paying VAT on past sales out of your own pocket, plus possible HMRC penalties. Acting promptly keeps you compliant.