Last updated:

Charging VAT when you’re not VAT registered (UK)

Short version: if you’re not VAT registered, you generally can’t charge VAT or show VAT on your invoice. But you can price your work however you like — you just need to label it correctly. Use the checker below to avoid common mistakes and work out what to do next.

Quick checker

This page is practical guidance, not legal or tax advice. If you’ve already invoiced VAT incorrectly, fix it quickly.

Are you VAT registered right now?

What happened?

Have you already invoiced/charged “VAT” to a customer? How was it shown?

Customer context

Customer type Did the customer ask for a VAT invoice / say they’ll “claim VAT back”?

Turnover check (optional)

If you’re close to the VAT registration threshold, the right next step might be “check registration”, not “add VAT”.

Is your taxable turnover close to the VAT registration threshold?

Likely answer

—

Next Steps

Invoice wording templates

Use these to avoid implying VAT when you’re not registered:

Good: “Total price: £1,000 (not VAT registered).”
Good: “VAT: N/A (supplier not VAT registered).”
Avoid: “£1,000 + VAT” (implies you will add VAT).
Avoid: “VAT included” (implies VAT was charged).
Avoid: showing VAT as a separate line unless you’re registered.

General information only. Not tax/legal advice. If money has already been taken as “VAT”, consider contacting HMRC or an accountant.

Guide

You can set any price you want — but if you’re not VAT registered, it’s just “the price”, not VAT + price.
Businesses ask for VAT invoices because they might reclaim VAT — but they can only do that if you’re VAT registered and issue a proper VAT invoice.
Writing “+ VAT” or “VAT included” can create confusion and potentially a compliance problem if you collect “VAT” you weren’t entitled to charge.