I have a business renting out construction tools like cement mixers and whacker plates. I have just registered for VAT as my turnover has now gone over the £85,000 threshold. I am interested in claiming VAT on tool purchased about 2 years ago that are still in my possession. How far can I backdate claims for VAT on tools I have purchased previously and I still own?

There’s a time limit for backdating claims for VAT paid before registration. From your date of registration the time limit is:

VAT registration

Overview

You must register your business for VAT with HM Revenue and Customs (HMRC) if its VAT taxable turnover is more than £85,000.

When you register, you’ll be sent a VAT registration certificate. This confirms:

your VAT number

when to submit your first VAT Return and payment

your ‘effective date of registration’ - this depends on the date you went over the threshold, or is the date you asked to register if it was voluntary

You can register voluntarily if your turnover is less than £85,000, unless everything you sell is exempt. You’ll have certain responsibilities if you register for VAT.

You can reclaim the VAT you’ve paid on certain purchases made before you registered.

Your VAT responsibilities

From your effective date of registration you must:

charge the right amount of VAT

pay any VAT due to HMRC

submit VAT Returns

keep VAT records and a VAT account

Most VAT registered businesses that earn over £85,000 must also follow the rules for ‘Making Tax Digital for VAT’.

While you wait

You cannot charge or show VAT on your invoices until you get your VAT number. However, you’ll still have to pay the VAT to HMRC for this period.

You should increase your prices to allow for this and tell your customers why. Once you’ve got your VAT number you can then reissue the invoices showing the VAT.

How to register

Register for VAT

Most businesses can register online - including partnerships and a group of companies registering under one VAT number.

By doing this you’ll register for VAT and create a VAT online account (sometimes known as a ‘Government Gateway account’). You need this to submit your VAT Returns to HM Revenue and Customs (HMRC).

Using an agent

You can appoint an accountant (or agent) to submit your VAT Returns and deal with HMRC on your behalf.

When you receive your VAT number from HMRC, you can sign up for a VAT online account (select option ‘VAT submit returns’).

When you cannot register online

You must register by post using VAT1 if:

you want to apply for a ‘registration exception’

you’re joining the Agricultural Flat Rate Scheme

you’re registering the divisions or business units of a body corporate under separate VAT numbers

Register by post using form:

VAT1A if you’re an EU business ‘distance selling’ to Northern Ireland

VAT1B if you import (‘acquire’) goods into Northern Ireland worth more than £85,000 from an EU country

VAT1C if you’re disposing of assets on which 8th or 13th Directive refunds have been claimed

Getting your certificate

You should get a VAT registration certificate within 30 working days, though it can take longer.

It’s sent either:

to your VAT online account

by post - if an agent registers you or you cannot register online

What you need to know

You need to provide details like your turnover, business activity and bank details.

Your registration date is known as your ‘effective date of registration’. You’ll have to pay HMRC any VAT due from this date.

You do not need to authorise an agent to register you for VAT.

When to register

You must register for VAT if your VAT taxable turnover goes over £85,000 (the ‘threshold’), or you know that it will. Your VAT taxable turnover is the total of everything sold that is not VAT exempt.

You can also register voluntarily.

Compulsory registration

You must register for VAT if:

you expect your VAT taxable turnover to be more than £85,000 in the next 30-day period

your business had a VAT taxable turnover of more than £85,000 over the last 12 months

You might also need to register in some other cases, depending on the kinds of goods or services you sell and where you sell them.

If you’ll exceed the VAT threshold in the next 30-day period

You must register if you realise that your total VAT taxable turnover is going to be more than £85,000 in the next 30-day period.

You have to register by the end of that 30-day period. Your effective date of registration is the date you realised, not the date your turnover went over the threshold.

If you exceeded the VAT threshold in the past 12 months

You must register if, by the end of any month, your total VAT taxable turnover for the last 12 months was over £85,000.

You have to register within 30 days of the end of the month when you went over the threshold. Your effective date of registration is the first day of the second month after you go over the threshold.

If you sell goods or services that are VAT exempt and are based in Northern Ireland

You’ll need to register if you only sell goods or services that are exempt from VAT or ‘out of scope’ but you buy goods for more than £85,000 from EU VAT-registered suppliers to use in your business.

If you take over a VAT-registered business

You may have to register for VAT.

Businesses outside the UK

There’s no threshold if neither you nor your business is based in the UK. You must register as soon as you supply any goods and services to the UK (or if you expect to in the next 30 days).

Late registration

If you register late, you must pay what you owe from when you should have registered.

You may get a penalty depending on how much you owe and how late your registration is.

Voluntary registration

You can register voluntarily if your business turnover is below £85,000. You must pay HMRC any VAT you owe from the date they register you.

Get an exception

You can apply for a registration ‘exception’ if your taxable turnover goes over the threshold temporarily.

Write to HMRC with evidence showing why you believe your VAT taxable turnover will not go over the deregistration threshold of £83,000 in the next 12 months.

HMRC will consider your exception and write confirming if you get one. If not, they’ll register you for VAT.

Selling or moving goods in Northern Ireland

If you’re a VAT-registered business, you need to tell HMRC if any of the following apply:

your goods are located in Northern Ireland at the time of sale

you receive goods in Northern Ireland from VAT-registered EU businesses for business purposes

you sell or move goods from Northern Ireland to an EU country

This means that:

you’ll be eligible to use VAT simplifications when you trade with the EU

your suppliers are able to zero rate goods that they dispatch to you from the EU

your trade with the EU will remain acquisitions and dispatches when accounting for VAT

Tell HMRC

You’ll need:

the Government Gateway user ID and password you used when you registered for VAT

your VAT registration number

the name of your business

Start now

After you’ve registered

When you are trading with the EU and sell goods in Northern Ireland, you’ll need to:

put an ‘XI’ prefix in front of your VAT number when communicating with an EU customer or supplier (your invoices will show XI in front of your VAT number - for example, XI 123456789 - instead of GB)

complete an EC Sales List if you’re selling goods from Northern Ireland to VAT-registered customers in the EU

If you’ve stopped selling or moving goods in Northern Ireland

If you’ve stopped selling goods in Northern Ireland or moving goods between Northern Ireland and the EU, you need to tell HMRC.

Registering for VAT in EU countries

You may need to register for VAT in the EU country you’re selling to. Find out how to register for VAT in EU countries on the European Commission website.

Supplying digital services

If your business supplies digital services to consumers in EU countries, you need to register for either:

VAT MOSS in any EU country

VAT in each country where you’re supplying digital services

Register for VAT MOSS in an EU country

You’ll need to register for the VAT MOSS scheme in an EU country by the 10th day of the month after your first sale to an EU customer.

Use the European Commission website to:

check if you should register for either the union or non-union VAT MOSS scheme

find contact details to register for VAT MOSS in an EU country

Register for VAT in an EU country

If you do not want to use the VAT MOSS scheme, you must register for VAT in each EU country where you supply digital services.

Find out how to register for VAT in EU member states on the European Commission website.

Calculate VAT taxable turnover

VAT taxable turnover is the total value of everything you sell that is not exempt from VAT.

You must register for VAT with HM Revenue and Customs (HMRC) if it goes over the current registration threshold in a rolling 12-month period. This is not a fixed period like the tax year or the calendar year - it could be any period, for example the start of June to the end of May.

The current threshold is £85,000. It usually goes up on 1 April each year. If your business is based in Northern Ireland, there are different thresholds for buying and selling from EU countries.

What to include

To check if you’ve gone over the threshold in any 12-month period, add together the total value of your UK sales that are not VAT exempt, including:

goods you hired or loaned to customers

business goods used for personal reasons

goods you bartered, part-exchanged or gave as gifts

services you received from businesses in other countries that you had to ‘reverse charge’

building work over £100,000 your business did for itself

Include any zero-rated items - only exclude VAT-exempt sales, and goods or services you supply outside of the UK.

If you’re over the threshold

You must register for VAT - though HMRC may allow you ‘exception from registration’ if your turnover goes above the threshold temporarily.

You must register straight away if you expect the value of everything you sell in the next 30 days to be over £85,000. You do not need to include anything that is VAT exempt.

You should check your rolling turnover regularly if you’re close to going over the threshold.

Thresholds for previous tax years

Check historical information about VAT thresholds if you think you should have been registered in previous tax years.

Purchases made before registration

There’s a time limit for backdating claims for VAT paid before registration. From your date of registration the time limit is:

4 years for goods you still have, or that were used to make other goods you still have

6 months for services

You can only reclaim VAT on purchases for the business now registered for VAT. They must relate to your ‘business purpose’. This means they must relate to VAT taxable goods or services that you supply.

You should reclaim them on your first VAT Return (add them to your Box 4 figure) and keep records including:

invoices and receipts

a description and purchase dates

information about how they relate to your business now

Changes to your details

You must keep your VAT registration details up to date. You can change your details:

online - through your VAT online account

by post - using form VAT484

by webchat or phone

You must send form VAT2 to the VAT Registration Service to report any changes to a partnership.

Some changes can affect your VAT registration or mean you have to cancel it.

When to tell HMRC

You need to tell HM Revenue and Customs (HMRC) about any changes to the following within 30 days or you could face a financial penalty:

the name, trading name or main address of your business

the accountant or agent who deals with your VAT

the members of a partnership, or the name or home address of any of the partners

Changing bank details

You must tell HMRC at least 14 days in advance if you’re changing your bank details.

You’ll also have to tell your bank to change your Direct Debit details if you pay your VAT by Direct Debit, but you should not do this within 5 banking days before or after your VAT return is due.

You must write to the Annual Accounting Registration Unit to change your Direct Debit details if you use the Annual Accounting Scheme. Include your registration number.

Death and illness

You must tell HMRC within 21 days if you take on the VAT responsibilities of someone who has died or is ill.

You can only do this by sending form VAT484 in the post, including details of the date of death or the date the illness started.

Cancel registration

You must cancel your registration if you’re no longer eligible to be VAT registered. For example:

you stop trading or making VAT taxable supplies

you join a VAT group

You must cancel within 30 days if you stop being eligible or you may be charged a penalty.

You can ask HM Revenue and Customs (HMRC) to cancel your registration if your VAT taxable turnover falls below the deregistration threshold of £83,000.

How to cancel

You can cancel your VAT registration online.

Cancel your registration

You can also fill in and send form VAT7 to cancel your VAT registration by post.

What happens next

It usually takes 3 weeks for HMRC to confirm your cancellation and the official cancellation date. This is either the date when the reason for your cancellation took effect (for example, when you stopped trading), or the date you asked to cancel if it’s voluntary.

HMRC will send confirmation to your VAT online account (or through the post if you do not apply online). From the date of cancellation you must stop charging VAT and keep your VAT records for 6 years.

HMRC will automatically re-register you if they realise you should not have cancelled. You’ll have to account for any VAT you should have paid in the meantime.

VAT after you cancel

You’ll have to submit a final VAT Return for the period up to and including the cancellation date. You must account for any stock and other assets you have on this date if:

you could reclaim VAT when you bought them

the total VAT due on these assets is over £1,000

Do not wait until you’ve received all your invoices before submitting your final return. You’ll still be able to reclaim VAT on anything you bought for your business while still registered once you get the invoices.

Transfer registration

You can transfer a VAT registration from one business to another, or if the status of your business changes.

For example, if:

you take over a company and want to keep using its VAT number

your business changes from a partnership to a sole trader

If you’re taking over a company, the previous owner must cancel their VAT registration before you can apply to transfer the VAT number.

If the status of your business changes, you must cancel your existing VAT registration and re-register.

You can apply to cancel or transfer a VAT registration:

online - through your VAT online account

by post - using form VAT68

What happens next

It usually takes 3 weeks for HMRC to confirm the transfer.

If you’re selling your business:

cancel your accountant’s access to your VAT online account - for example if you authorised them to deal with your VAT

cancel any direct debits on your VAT online account

You must also give your records to the buyer if you’re passing on your VAT number.

If you’re buying a business:

contact HMRC within 21 days of the transfer application if you want to keep the seller’s accountant

replace any self-billing arrangements with new ones

set up new direct debits on your VAT online account

4 years for goods you still have, or that were used to make other goods you still have

VAT registration

Overview

You must register your business for VAT with HM Revenue and Customs (HMRC) if its VAT taxable turnover is more than £85,000.

When you register, you’ll be sent a VAT registration certificate. This confirms:

your VAT number

when to submit your first VAT Return and payment

You can reclaim the VAT you’ve paid on certain purchases made before you registered.

Your VAT responsibilities

From your effective date of registration you must:

charge the right amount of VAT

pay any VAT due to HMRC

submit VAT Returns

keep VAT records and a VAT account

Most VAT registered businesses that earn over £85,000 must also follow the rules for ‘Making Tax Digital for VAT’.

While you wait

How to register

Register for VAT

Most businesses can register online - including partnerships and a group of companies registering under one VAT number.

Using an agent

You can appoint an accountant (or agent) to submit your VAT Returns and deal with HMRC on your behalf.

When you receive your VAT number from HMRC, you can sign up for a VAT online account (select option ‘VAT submit returns’).

When you cannot register online

You must register by post using VAT1 if:

you want to apply for a ‘registration exception’

you’re joining the Agricultural Flat Rate Scheme

you’re registering the divisions or business units of a body corporate under separate VAT numbers

Register by post using form:

VAT1A if you’re an EU business ‘distance selling’ to Northern Ireland

VAT1B if you import (‘acquire’) goods into Northern Ireland worth more than £85,000 from an EU country

VAT1C if you’re disposing of assets on which 8th or 13th Directive refunds have been claimed

Getting your certificate

You should get a VAT registration certificate within 30 working days, though it can take longer.

It’s sent either:

to your VAT online account

by post - if an agent registers you or you cannot register online

What you need to know

You need to provide details like your turnover, business activity and bank details.

Your registration date is known as your ‘effective date of registration’. You’ll have to pay HMRC any VAT due from this date.

You do not need to authorise an agent to register you for VAT.

When to register

You can also register voluntarily.

Compulsory registration

You must register for VAT if:

you expect your VAT taxable turnover to be more than £85,000 in the next 30-day period

your business had a VAT taxable turnover of more than £85,000 over the last 12 months

If you’ll exceed the VAT threshold in the next 30-day period

You must register if you realise that your total VAT taxable turnover is going to be more than £85,000 in the next 30-day period.

If you exceeded the VAT threshold in the past 12 months

You must register if, by the end of any month, your total VAT taxable turnover for the last 12 months was over £85,000.

If you sell goods or services that are VAT exempt and are based in Northern Ireland

If you take over a VAT-registered business

You may have to register for VAT.

Businesses outside the UK

Late registration

If you register late, you must pay what you owe from when you should have registered.

You may get a penalty depending on how much you owe and how late your registration is.

Voluntary registration

Get an exception

You can apply for a registration ‘exception’ if your taxable turnover goes over the threshold temporarily.

HMRC will consider your exception and write confirming if you get one. If not, they’ll register you for VAT.

Selling or moving goods in Northern Ireland

If you’re a VAT-registered business, you need to tell HMRC if any of the following apply:

your goods are located in Northern Ireland at the time of sale

you receive goods in Northern Ireland from VAT-registered EU businesses for business purposes

you sell or move goods from Northern Ireland to an EU country

This means that:

you’ll be eligible to use VAT simplifications when you trade with the EU

your suppliers are able to zero rate goods that they dispatch to you from the EU

your trade with the EU will remain acquisitions and dispatches when accounting for VAT

Tell HMRC

You’ll need:

the Government Gateway user ID and password you used when you registered for VAT

your VAT registration number

the name of your business

Start now

After you’ve registered

When you are trading with the EU and sell goods in Northern Ireland, you’ll need to:

complete an EC Sales List if you’re selling goods from Northern Ireland to VAT-registered customers in the EU

If you’ve stopped selling or moving goods in Northern Ireland

If you’ve stopped selling goods in Northern Ireland or moving goods between Northern Ireland and the EU, you need to tell HMRC.

Registering for VAT in EU countries

Supplying digital services

If your business supplies digital services to consumers in EU countries, you need to register for either:

VAT MOSS in any EU country

VAT in each country where you’re supplying digital services

Register for VAT MOSS in an EU country

Use the European Commission website to:

check if you should register for either the union or non-union VAT MOSS scheme

find contact details to register for VAT MOSS in an EU country

Register for VAT in an EU country

If you do not want to use the VAT MOSS scheme, you must register for VAT in each EU country where you supply digital services.

Find out how to register for VAT in EU member states on the European Commission website.

Calculate VAT taxable turnover

VAT taxable turnover is the total value of everything you sell that is not exempt from VAT.

What to include

goods you hired or loaned to customers

business goods used for personal reasons

goods you bartered, part-exchanged or gave as gifts

services you received from businesses in other countries that you had to ‘reverse charge’

building work over £100,000 your business did for itself

Include any zero-rated items - only exclude VAT-exempt sales, and goods or services you supply outside of the UK.

If you’re over the threshold

You should check your rolling turnover regularly if you’re close to going over the threshold.

Thresholds for previous tax years

Check historical information about VAT thresholds if you think you should have been registered in previous tax years.

Purchases made before registration

There’s a time limit for backdating claims for VAT paid before registration. From your date of registration the time limit is:

4 years for goods you still have, or that were used to make other goods you still have

6 months for services

You should reclaim them on your first VAT Return (add them to your Box 4 figure) and keep records including:

invoices and receipts

a description and purchase dates

information about how they relate to your business now

Changes to your details

You must keep your VAT registration details up to date. You can change your details:

online - through your VAT online account

by post - using form VAT484

by webchat or phone

You must send form VAT2 to the VAT Registration Service to report any changes to a partnership.

Some changes can affect your VAT registration or mean you have to cancel it.

When to tell HMRC

the name, trading name or main address of your business

the accountant or agent who deals with your VAT

the members of a partnership, or the name or home address of any of the partners

Changing bank details

You must tell HMRC at least 14 days in advance if you’re changing your bank details.

Death and illness

You must tell HMRC within 21 days if you take on the VAT responsibilities of someone who has died or is ill.

You can only do this by sending form VAT484 in the post, including details of the date of death or the date the illness started.

Cancel registration

You must cancel your registration if you’re no longer eligible to be VAT registered. For example:

you stop trading or making VAT taxable supplies

you join a VAT group

You must cancel within 30 days if you stop being eligible or you may be charged a penalty.

How to cancel

You can cancel your VAT registration online.

Cancel your registration

You can also fill in and send form VAT7 to cancel your VAT registration by post.

What happens next

VAT after you cancel

you could reclaim VAT when you bought them

the total VAT due on these assets is over £1,000

Transfer registration

You can transfer a VAT registration from one business to another, or if the status of your business changes.

For example, if:

you take over a company and want to keep using its VAT number

your business changes from a partnership to a sole trader

If the status of your business changes, you must cancel your existing VAT registration and re-register.

You can apply to cancel or transfer a VAT registration:

online - through your VAT online account

by post - using form VAT68

What happens next

It usually takes 3 weeks for HMRC to confirm the transfer.

If you’re selling your business:

cancel your accountant’s access to your VAT online account - for example if you authorised them to deal with your VAT

cancel any direct debits on your VAT online account

You must also give your records to the buyer if you’re passing on your VAT number.

If you’re buying a business:

contact HMRC within 21 days of the transfer application if you want to keep the seller’s accountant

replace any self-billing arrangements with new ones

set up new direct debits on your VAT online account


I have a business renting out construction tools like cement mixers and whacker plates. I have just registered for VAT as my turnover has now gone over the £85,000 threshold. I am interested in claiming VAT on services I have payed for around 3 months ago. How far can I backdate claims for VAT on services I have payed for previously?

There’s a time limit for backdating claims for VAT paid before registration. From your date of registration the time limit is:

VAT registration

Overview

You must register your business for VAT with HM Revenue and Customs (HMRC) if its VAT taxable turnover is more than £85,000.

When you register, you’ll be sent a VAT registration certificate. This confirms:

your VAT number

when to submit your first VAT Return and payment

your ‘effective date of registration’ - this depends on the date you went over the threshold, or is the date you asked to register if it was voluntary

You can register voluntarily if your turnover is less than £85,000, unless everything you sell is exempt. You’ll have certain responsibilities if you register for VAT.

You can reclaim the VAT you’ve paid on certain purchases made before you registered.

Your VAT responsibilities

From your effective date of registration you must:

charge the right amount of VAT

pay any VAT due to HMRC

submit VAT Returns

keep VAT records and a VAT account

Most VAT registered businesses that earn over £85,000 must also follow the rules for ‘Making Tax Digital for VAT’.

While you wait

You cannot charge or show VAT on your invoices until you get your VAT number. However, you’ll still have to pay the VAT to HMRC for this period.

You should increase your prices to allow for this and tell your customers why. Once you’ve got your VAT number you can then reissue the invoices showing the VAT.

How to register

Register for VAT

Most businesses can register online - including partnerships and a group of companies registering under one VAT number.

By doing this you’ll register for VAT and create a VAT online account (sometimes known as a ‘Government Gateway account’). You need this to submit your VAT Returns to HM Revenue and Customs (HMRC).

Using an agent

You can appoint an accountant (or agent) to submit your VAT Returns and deal with HMRC on your behalf.

When you receive your VAT number from HMRC, you can sign up for a VAT online account (select option ‘VAT submit returns’).

When you cannot register online

You must register by post using VAT1 if:

you want to apply for a ‘registration exception’

you’re joining the Agricultural Flat Rate Scheme

you’re registering the divisions or business units of a body corporate under separate VAT numbers

Register by post using form:

VAT1A if you’re an EU business ‘distance selling’ to Northern Ireland

VAT1B if you import (‘acquire’) goods into Northern Ireland worth more than £85,000 from an EU country

VAT1C if you’re disposing of assets on which 8th or 13th Directive refunds have been claimed

Getting your certificate

You should get a VAT registration certificate within 30 working days, though it can take longer.

It’s sent either:

to your VAT online account

by post - if an agent registers you or you cannot register online

What you need to know

You need to provide details like your turnover, business activity and bank details.

Your registration date is known as your ‘effective date of registration’. You’ll have to pay HMRC any VAT due from this date.

You do not need to authorise an agent to register you for VAT.

When to register

You must register for VAT if your VAT taxable turnover goes over £85,000 (the ‘threshold’), or you know that it will. Your VAT taxable turnover is the total of everything sold that is not VAT exempt.

You can also register voluntarily.

Compulsory registration

You must register for VAT if:

you expect your VAT taxable turnover to be more than £85,000 in the next 30-day period

your business had a VAT taxable turnover of more than £85,000 over the last 12 months

You might also need to register in some other cases, depending on the kinds of goods or services you sell and where you sell them.

If you’ll exceed the VAT threshold in the next 30-day period

You must register if you realise that your total VAT taxable turnover is going to be more than £85,000 in the next 30-day period.

You have to register by the end of that 30-day period. Your effective date of registration is the date you realised, not the date your turnover went over the threshold.

If you exceeded the VAT threshold in the past 12 months

You must register if, by the end of any month, your total VAT taxable turnover for the last 12 months was over £85,000.

You have to register within 30 days of the end of the month when you went over the threshold. Your effective date of registration is the first day of the second month after you go over the threshold.

If you sell goods or services that are VAT exempt and are based in Northern Ireland

You’ll need to register if you only sell goods or services that are exempt from VAT or ‘out of scope’ but you buy goods for more than £85,000 from EU VAT-registered suppliers to use in your business.

If you take over a VAT-registered business

You may have to register for VAT.

Businesses outside the UK

There’s no threshold if neither you nor your business is based in the UK. You must register as soon as you supply any goods and services to the UK (or if you expect to in the next 30 days).

Late registration

If you register late, you must pay what you owe from when you should have registered.

You may get a penalty depending on how much you owe and how late your registration is.

Voluntary registration

You can register voluntarily if your business turnover is below £85,000. You must pay HMRC any VAT you owe from the date they register you.

Get an exception

You can apply for a registration ‘exception’ if your taxable turnover goes over the threshold temporarily.

Write to HMRC with evidence showing why you believe your VAT taxable turnover will not go over the deregistration threshold of £83,000 in the next 12 months.

HMRC will consider your exception and write confirming if you get one. If not, they’ll register you for VAT.

Selling or moving goods in Northern Ireland

If you’re a VAT-registered business, you need to tell HMRC if any of the following apply:

your goods are located in Northern Ireland at the time of sale

you receive goods in Northern Ireland from VAT-registered EU businesses for business purposes

you sell or move goods from Northern Ireland to an EU country

This means that:

you’ll be eligible to use VAT simplifications when you trade with the EU

your suppliers are able to zero rate goods that they dispatch to you from the EU

your trade with the EU will remain acquisitions and dispatches when accounting for VAT

Tell HMRC

You’ll need:

the Government Gateway user ID and password you used when you registered for VAT

your VAT registration number

the name of your business

Start now

After you’ve registered

When you are trading with the EU and sell goods in Northern Ireland, you’ll need to:

put an ‘XI’ prefix in front of your VAT number when communicating with an EU customer or supplier (your invoices will show XI in front of your VAT number - for example, XI 123456789 - instead of GB)

complete an EC Sales List if you’re selling goods from Northern Ireland to VAT-registered customers in the EU

If you’ve stopped selling or moving goods in Northern Ireland

If you’ve stopped selling goods in Northern Ireland or moving goods between Northern Ireland and the EU, you need to tell HMRC.

Registering for VAT in EU countries

You may need to register for VAT in the EU country you’re selling to. Find out how to register for VAT in EU countries on the European Commission website.

Supplying digital services

If your business supplies digital services to consumers in EU countries, you need to register for either:

VAT MOSS in any EU country

VAT in each country where you’re supplying digital services

Register for VAT MOSS in an EU country

You’ll need to register for the VAT MOSS scheme in an EU country by the 10th day of the month after your first sale to an EU customer.

Use the European Commission website to:

check if you should register for either the union or non-union VAT MOSS scheme

find contact details to register for VAT MOSS in an EU country

Register for VAT in an EU country

If you do not want to use the VAT MOSS scheme, you must register for VAT in each EU country where you supply digital services.

Find out how to register for VAT in EU member states on the European Commission website.

Calculate VAT taxable turnover

VAT taxable turnover is the total value of everything you sell that is not exempt from VAT.

You must register for VAT with HM Revenue and Customs (HMRC) if it goes over the current registration threshold in a rolling 12-month period. This is not a fixed period like the tax year or the calendar year - it could be any period, for example the start of June to the end of May.

The current threshold is £85,000. It usually goes up on 1 April each year. If your business is based in Northern Ireland, there are different thresholds for buying and selling from EU countries.

What to include

To check if you’ve gone over the threshold in any 12-month period, add together the total value of your UK sales that are not VAT exempt, including:

goods you hired or loaned to customers

business goods used for personal reasons

goods you bartered, part-exchanged or gave as gifts

services you received from businesses in other countries that you had to ‘reverse charge’

building work over £100,000 your business did for itself

Include any zero-rated items - only exclude VAT-exempt sales, and goods or services you supply outside of the UK.

If you’re over the threshold

You must register for VAT - though HMRC may allow you ‘exception from registration’ if your turnover goes above the threshold temporarily.

You must register straight away if you expect the value of everything you sell in the next 30 days to be over £85,000. You do not need to include anything that is VAT exempt.

You should check your rolling turnover regularly if you’re close to going over the threshold.

Thresholds for previous tax years

Check historical information about VAT thresholds if you think you should have been registered in previous tax years.

Purchases made before registration

There’s a time limit for backdating claims for VAT paid before registration. From your date of registration the time limit is:

4 years for goods you still have, or that were used to make other goods you still have

6 months for services

You can only reclaim VAT on purchases for the business now registered for VAT. They must relate to your ‘business purpose’. This means they must relate to VAT taxable goods or services that you supply.

You should reclaim them on your first VAT Return (add them to your Box 4 figure) and keep records including:

invoices and receipts

a description and purchase dates

information about how they relate to your business now

Changes to your details

You must keep your VAT registration details up to date. You can change your details:

online - through your VAT online account

by post - using form VAT484

by webchat or phone

You must send form VAT2 to the VAT Registration Service to report any changes to a partnership.

Some changes can affect your VAT registration or mean you have to cancel it.

When to tell HMRC

You need to tell HM Revenue and Customs (HMRC) about any changes to the following within 30 days or you could face a financial penalty:

the name, trading name or main address of your business

the accountant or agent who deals with your VAT

the members of a partnership, or the name or home address of any of the partners

Changing bank details

You must tell HMRC at least 14 days in advance if you’re changing your bank details.

You’ll also have to tell your bank to change your Direct Debit details if you pay your VAT by Direct Debit, but you should not do this within 5 banking days before or after your VAT return is due.

You must write to the Annual Accounting Registration Unit to change your Direct Debit details if you use the Annual Accounting Scheme. Include your registration number.

Death and illness

You must tell HMRC within 21 days if you take on the VAT responsibilities of someone who has died or is ill.

You can only do this by sending form VAT484 in the post, including details of the date of death or the date the illness started.

Cancel registration

You must cancel your registration if you’re no longer eligible to be VAT registered. For example:

you stop trading or making VAT taxable supplies

you join a VAT group

You must cancel within 30 days if you stop being eligible or you may be charged a penalty.

You can ask HM Revenue and Customs (HMRC) to cancel your registration if your VAT taxable turnover falls below the deregistration threshold of £83,000.

How to cancel

You can cancel your VAT registration online.

Cancel your registration

You can also fill in and send form VAT7 to cancel your VAT registration by post.

What happens next

It usually takes 3 weeks for HMRC to confirm your cancellation and the official cancellation date. This is either the date when the reason for your cancellation took effect (for example, when you stopped trading), or the date you asked to cancel if it’s voluntary.

HMRC will send confirmation to your VAT online account (or through the post if you do not apply online). From the date of cancellation you must stop charging VAT and keep your VAT records for 6 years.

HMRC will automatically re-register you if they realise you should not have cancelled. You’ll have to account for any VAT you should have paid in the meantime.

VAT after you cancel

You’ll have to submit a final VAT Return for the period up to and including the cancellation date. You must account for any stock and other assets you have on this date if:

you could reclaim VAT when you bought them

the total VAT due on these assets is over £1,000

Do not wait until you’ve received all your invoices before submitting your final return. You’ll still be able to reclaim VAT on anything you bought for your business while still registered once you get the invoices.

Transfer registration

You can transfer a VAT registration from one business to another, or if the status of your business changes.

For example, if:

you take over a company and want to keep using its VAT number

your business changes from a partnership to a sole trader

If you’re taking over a company, the previous owner must cancel their VAT registration before you can apply to transfer the VAT number.

If the status of your business changes, you must cancel your existing VAT registration and re-register.

You can apply to cancel or transfer a VAT registration:

online - through your VAT online account

by post - using form VAT68

What happens next

It usually takes 3 weeks for HMRC to confirm the transfer.

If you’re selling your business:

cancel your accountant’s access to your VAT online account - for example if you authorised them to deal with your VAT

cancel any direct debits on your VAT online account

You must also give your records to the buyer if you’re passing on your VAT number.

If you’re buying a business:

contact HMRC within 21 days of the transfer application if you want to keep the seller’s accountant

replace any self-billing arrangements with new ones

set up new direct debits on your VAT online account

6 months for services

VAT registration

Overview

You must register your business for VAT with HM Revenue and Customs (HMRC) if its VAT taxable turnover is more than £85,000.

When you register, you’ll be sent a VAT registration certificate. This confirms:

your VAT number

when to submit your first VAT Return and payment

You can reclaim the VAT you’ve paid on certain purchases made before you registered.

Your VAT responsibilities

From your effective date of registration you must:

charge the right amount of VAT

pay any VAT due to HMRC

submit VAT Returns

keep VAT records and a VAT account

Most VAT registered businesses that earn over £85,000 must also follow the rules for ‘Making Tax Digital for VAT’.

While you wait

How to register

Register for VAT

Most businesses can register online - including partnerships and a group of companies registering under one VAT number.

Using an agent

You can appoint an accountant (or agent) to submit your VAT Returns and deal with HMRC on your behalf.

When you receive your VAT number from HMRC, you can sign up for a VAT online account (select option ‘VAT submit returns’).

When you cannot register online

You must register by post using VAT1 if:

you want to apply for a ‘registration exception’

you’re joining the Agricultural Flat Rate Scheme

you’re registering the divisions or business units of a body corporate under separate VAT numbers

Register by post using form:

VAT1A if you’re an EU business ‘distance selling’ to Northern Ireland

VAT1B if you import (‘acquire’) goods into Northern Ireland worth more than £85,000 from an EU country

VAT1C if you’re disposing of assets on which 8th or 13th Directive refunds have been claimed

Getting your certificate

You should get a VAT registration certificate within 30 working days, though it can take longer.

It’s sent either:

to your VAT online account

by post - if an agent registers you or you cannot register online

What you need to know

You need to provide details like your turnover, business activity and bank details.

Your registration date is known as your ‘effective date of registration’. You’ll have to pay HMRC any VAT due from this date.

You do not need to authorise an agent to register you for VAT.

When to register

You can also register voluntarily.

Compulsory registration

You must register for VAT if:

you expect your VAT taxable turnover to be more than £85,000 in the next 30-day period

your business had a VAT taxable turnover of more than £85,000 over the last 12 months

If you’ll exceed the VAT threshold in the next 30-day period

You must register if you realise that your total VAT taxable turnover is going to be more than £85,000 in the next 30-day period.

If you exceeded the VAT threshold in the past 12 months

You must register if, by the end of any month, your total VAT taxable turnover for the last 12 months was over £85,000.

If you sell goods or services that are VAT exempt and are based in Northern Ireland

If you take over a VAT-registered business

You may have to register for VAT.

Businesses outside the UK

Late registration

If you register late, you must pay what you owe from when you should have registered.

You may get a penalty depending on how much you owe and how late your registration is.

Voluntary registration

Get an exception

You can apply for a registration ‘exception’ if your taxable turnover goes over the threshold temporarily.

HMRC will consider your exception and write confirming if you get one. If not, they’ll register you for VAT.

Selling or moving goods in Northern Ireland

If you’re a VAT-registered business, you need to tell HMRC if any of the following apply:

your goods are located in Northern Ireland at the time of sale

you receive goods in Northern Ireland from VAT-registered EU businesses for business purposes

you sell or move goods from Northern Ireland to an EU country

This means that:

you’ll be eligible to use VAT simplifications when you trade with the EU

your suppliers are able to zero rate goods that they dispatch to you from the EU

your trade with the EU will remain acquisitions and dispatches when accounting for VAT

Tell HMRC

You’ll need:

the Government Gateway user ID and password you used when you registered for VAT

your VAT registration number

the name of your business

Start now

After you’ve registered

When you are trading with the EU and sell goods in Northern Ireland, you’ll need to:

complete an EC Sales List if you’re selling goods from Northern Ireland to VAT-registered customers in the EU

If you’ve stopped selling or moving goods in Northern Ireland

If you’ve stopped selling goods in Northern Ireland or moving goods between Northern Ireland and the EU, you need to tell HMRC.

Registering for VAT in EU countries

Supplying digital services

If your business supplies digital services to consumers in EU countries, you need to register for either:

VAT MOSS in any EU country

VAT in each country where you’re supplying digital services

Register for VAT MOSS in an EU country

Use the European Commission website to:

check if you should register for either the union or non-union VAT MOSS scheme

find contact details to register for VAT MOSS in an EU country

Register for VAT in an EU country

If you do not want to use the VAT MOSS scheme, you must register for VAT in each EU country where you supply digital services.

Find out how to register for VAT in EU member states on the European Commission website.

Calculate VAT taxable turnover

VAT taxable turnover is the total value of everything you sell that is not exempt from VAT.

What to include

goods you hired or loaned to customers

business goods used for personal reasons

goods you bartered, part-exchanged or gave as gifts

services you received from businesses in other countries that you had to ‘reverse charge’

building work over £100,000 your business did for itself

Include any zero-rated items - only exclude VAT-exempt sales, and goods or services you supply outside of the UK.

If you’re over the threshold

You should check your rolling turnover regularly if you’re close to going over the threshold.

Thresholds for previous tax years

Check historical information about VAT thresholds if you think you should have been registered in previous tax years.

Purchases made before registration

There’s a time limit for backdating claims for VAT paid before registration. From your date of registration the time limit is:

4 years for goods you still have, or that were used to make other goods you still have

6 months for services

You should reclaim them on your first VAT Return (add them to your Box 4 figure) and keep records including:

invoices and receipts

a description and purchase dates

information about how they relate to your business now

Changes to your details

You must keep your VAT registration details up to date. You can change your details:

online - through your VAT online account

by post - using form VAT484

by webchat or phone

You must send form VAT2 to the VAT Registration Service to report any changes to a partnership.

Some changes can affect your VAT registration or mean you have to cancel it.

When to tell HMRC

the name, trading name or main address of your business

the accountant or agent who deals with your VAT

the members of a partnership, or the name or home address of any of the partners

Changing bank details

You must tell HMRC at least 14 days in advance if you’re changing your bank details.

Death and illness

You must tell HMRC within 21 days if you take on the VAT responsibilities of someone who has died or is ill.

You can only do this by sending form VAT484 in the post, including details of the date of death or the date the illness started.

Cancel registration

You must cancel your registration if you’re no longer eligible to be VAT registered. For example:

you stop trading or making VAT taxable supplies

you join a VAT group

You must cancel within 30 days if you stop being eligible or you may be charged a penalty.

How to cancel

You can cancel your VAT registration online.

Cancel your registration

You can also fill in and send form VAT7 to cancel your VAT registration by post.

What happens next

VAT after you cancel

you could reclaim VAT when you bought them

the total VAT due on these assets is over £1,000

Transfer registration

You can transfer a VAT registration from one business to another, or if the status of your business changes.

For example, if:

you take over a company and want to keep using its VAT number

your business changes from a partnership to a sole trader

If the status of your business changes, you must cancel your existing VAT registration and re-register.

You can apply to cancel or transfer a VAT registration:

online - through your VAT online account

by post - using form VAT68

What happens next

It usually takes 3 weeks for HMRC to confirm the transfer.

If you’re selling your business:

cancel your accountant’s access to your VAT online account - for example if you authorised them to deal with your VAT

cancel any direct debits on your VAT online account

You must also give your records to the buyer if you’re passing on your VAT number.

If you’re buying a business:

contact HMRC within 21 days of the transfer application if you want to keep the seller’s accountant

replace any self-billing arrangements with new ones

set up new direct debits on your VAT online account


My family and I are private tenants and have been for over five years in the same place. My landlord has just increased our rent out of the blue and we cannot afford the new rate. The fixed-term tenancy agreement has two years remaining. Is it acceptable for the landlord to have done this arbitrarily?

For a fixed-term tenancy (running for a set period) your landlord can only increase the rent if you agree. If you do not agree, the rent can only be increased when the fixed term ends.

Private renting

Your rights and responsibilities

You have certain rights and responsibilities if you’re a tenant in privately rented property.

Your rights

As a tenant, you have the right to:

live in a property that’s safe and in a good state of repair

have your deposit returned when the tenancy ends - and in some circumstances have it protected

challenge excessively high charges

know who your landlord is

live in the property undisturbed

see an Energy Performance Certificate for the property

be protected from unfair eviction and unfair rent

have a written agreement if you have a fixed-term tenancy of more than 3 years

If you have a tenancy agreement, it should be fair and comply with the law.

If you do not know who your landlord is, write to the person or company you pay rent to. Your landlord can be fined If they do not give you this information within 21 days.

When you start a new tenancy

When you start a new assured or short assured tenancy, your landlord must give you:

a copy of the How to rent guide if you live in England

a tenant information pack if you live in Scotland

Your responsibilities

You should give your landlord access to the property to inspect it or carry out repairs. Your landlord has to give you at least 24 hours’ notice and visit at a reasonable time of day, unless it’s an emergency and they need immediate access.

Coronavirus has not changed these rules, so you should work with your landlord to make sure that any visits are for an urgent reason (for example, you do not have hot water, heating or toilet facilities). Follow NHS guidelines if the visit must happen.

You can read the coronavirus and renting guidance for tenants and landlords.

You must also:

take good care of the property, for example turn off the water at the mains if you’re away in cold weather

pay the agreed rent, even if repairs are needed or you’re in dispute with your landlord

pay other charges as agreed with the landlord, for example Council Tax or utility bills

repair or pay for any damage caused by you, your family or friends

only sublet a property if the tenancy agreement or your landlord allows it

Coronavirus has not changed your responsibilities - continue to pay rent to the best of your ability and speak to your landlord if you cannot.

Your landlord has the right to take legal action to evict you if you do not meet your responsibilities.

If your landlord lives outside the UK

Contact HM Revenue and Customs (HMRC) if your landlord lives outside the UK and you pay £100 or more a week in rent directly to them.

You may have to deduct tax from your rent under HMRC’s ‘non-resident landlord scheme’.

Document checks

You must prove that you have a right to rent property in England if you’re:

starting a tenancy on or after 1 February 2016.

renting it as your main home.

Exemptions

You will not have to prove your right to rent if you live in:

student accommodation, for example halls of residence

accommodation provided by your employer as part of your job or training

social housing

accommodation provided by the council

hostels and refuges

a care home, hospital or hospice

accommodation with a lease of 7 or more years

Check the full list of exemptions from the right to rent property checks.

What your landlord must do

Your landlord (or letting agent) must:

check your documents to make sure you have the right to rent a property in England

check the documents of any other adults living in the property

make copies of your documents and keep them until you leave the property

return your original documents to you once they’ve finished the check

Because of coronavirus (COVID-19) there are temporary changes to the way your landlord can check documents. They might ask you to share your documents digitally and do the checks on a video call.

Read the list of acceptable documents.

Your landlord must not discriminate against you, for example because of your nationality.

If you cannot prove your right to rent

You will not be able to rent property if you cannot provide the acceptable documents.

If the Home Office has your documents

If the Home Office has your documents because of an outstanding case or appeal, ask your landlord to check with the Home Office.

Give your landlord your Home Office reference number to do the check.

If your circumstances mean you can still rent in the UK

In some circumstances, you can still rent even if you are not allowed to stay in the UK, for example if you’re:

a victim of slavery

using the Home Office’s voluntary departure scheme

Check with the Home Office team that’s dealing with your case.

Your landlord will have to check with the Home Office.

Repeat checks

You will not have a further check if you stay in the same property and one of the following applies:

you’re British

you’re an EU, EEA or Swiss citizen

you have no time limit on your right to stay in the UK

Your landlord will have to make a repeat check if there’s a time limit on your right to stay in the UK.

Your landlord will ask to see your documents again just before your permission to stay runs out, or after 12 months, whichever is longer.

Your landlord's safety responsibilities

Your landlord must keep the property you live in safe and free from health hazards.

Coronavirus has not changed these rules, so you should work with your landlord to make sure that any necessary checks happen safely. Follow NHS guidelines if a visit must happen in person.

Gas safety

Your landlord must:

make sure gas equipment they supply is safely installed and maintained by a Gas Safe registered engineer

have a registered engineer do an annual gas safety check on each appliance and flue

give you a copy of the gas safety check record before you move in, or within 28 days of the check

Electrical safety

Your landlord must make sure:

the electrical system is safe, for example sockets and light fittings

all appliances they supply are safe, for example cookers and kettles

Fire safety

Your landlord must:

follow safety regulations

provide a smoke alarm on each storey and a carbon monoxide alarm in any room with a solid fuel burning appliance (for example a coal fire or wood burning stove)

check you have access to escape routes at all times

make sure the furniture and furnishings they supply are fire safe

provide fire alarms and extinguishers if the property is a large house in multiple occupation (HMO)

Repairs

What your landlord must do

Your landlord is always responsible for repairs to:

the property’s structure and exterior

basins, sinks, baths and other sanitary fittings including pipes and drains

heating and hot water

gas appliances, pipes, flues and ventilation

electrical wiring

any damage they cause by attempting repairs

Your landlord is usually responsible for repairing common areas, for example staircases in blocks of flats. Check your tenancy agreement if you’re unsure.

Your responsibilities

You should only carry out repairs if the tenancy agreement says you can.

You cannot be forced to do repairs that are your landlord’s responsibility.

If you damage another tenant’s flat, for example if water leaks into another flat from an overflowing bath, you’re responsible for paying for the repairs. You’re also responsible for paying to put right any damage caused by your family and friends.

If your property needs repairs

Contact your landlord if you think repairs are needed. Do this straight away for faults that could damage health, for example faulty electrical wiring.

Your landlord should tell you when you can expect the repairs to be done. You should carry on paying rent while you’re waiting.

Coronavirus has not changed these rules, so you should work with your landlord to make sure that any urgent repairs happen safely. Follow NHS guidelines if the repair must happen.

If repairs are not done

Contact the environmental health department at your local council for help. They must take action if they think the problems could harm you or cause a nuisance to others.

Contact the Private Rented Housing Panel (PRHP) if you’re in Scotland.

If your house is not fit to live in

If you think your home’s unsafe, contact housing department at your local council. They’ll do a Housing Health and Safety Rating System (HHSRS) assessment and must take action if they think your home has serious health and safety hazards.

There are different:

housing standards and procedures in Scotland

housing standards and procedures in Northern Ireland

Rent increases

Your tenancy agreement should include how and when the rent will be reviewed.

There are special rules for increasing protected (sometimes known as ‘regulated’) tenancy rents.

When your landlord can increase rent

For a periodic tenancy (rolling on a week-by-week or month-by-month basis) your landlord cannot normally increase the rent more than once a year without your agreement.

General rules around rent increases

For any tenancy:

your landlord must get your permission if they want to increase the rent by more than previously agreed

the rent increase must be fair and realistic, which means in line with average local rents

How your landlord must propose a rent increase

If the tenancy agreement lays down a procedure for increasing rent, your landlord must stick to this. Otherwise, your landlord can:

renew your tenancy agreement at the end of the fixed term, but with an increased rent

agree a rent increase with you and produce a written record of the agreement that you both sign

use a ‘Landlord’s notice proposing a new rent’ form, which increases the rent after the fixed term has ended

Your landlord must give you a minimum of one month’s notice (if you pay rent weekly or monthly). If you have a yearly tenancy, they must give you 6 months’ notice.

Rent disputes

You can apply to a tribunal to decide on certain rent disputes in England.

There are different ways to:

solve rent disputes in Scotland

solve rent disputes in Wales

solve rent disputes in Northern Ireland

Rent increase

You can only apply to the tribunal if:

you have an assured or assured shorthold tenancy

your rent’s been increased as part of a ‘section 13 procedure’ - the letter from your landlord will say if it has, and will tell you more about applying to the tribunal

You must apply before the new rent is due to start.

New rental terms

You can ask the tribunal to decide new rental terms when you renew your tenancy.

Rent set by rent officer

Contact the Valuation Office Agency if you have a regulated or protected tenancy.

If a rent officer has set your rent before, the only way to increase it is to have a rent officer set a new rent. If a rent officer has not set your rent before, they can set a rent limit. The landlord cannot charge more.

You can appeal against a rent officer’s decision. They may pass your case to a tribunal, which can make a final decision on the rent.

If you think your rent is high when you start a tenancy

You may be able to apply to the tribunal. Contact Citizens Advice for advice.

You must apply within 6 weeks of moving in.

Rent arrears

Your landlord can evict you if you fall behind with your rent - you could lose your home.

Coronavirus (COVID-19) has not changed this, but there are new rules that mean your landlord must give you at least 6 months’ notice if they plan to evict you, unless you owe at least 6 months’ rent. Read the coronavirus and renting guidance for tenants and landlords.

If you are unable to pay your rent due to coronavirus, speak to your landlord as soon as possible.

You can get advice if you’re in rent arrears or having difficulty paying your rent from:

Money Advice Service

Shelter

Citizens Advice

Deposits

You may have to pay a deposit before you move in. Contact your local council about possible rent or deposit guarantee schemes if you’re having difficulty paying the deposit.

Deposit protection

Your landlord must put your deposit in a government-approved tenancy deposit protection scheme if you have an assured shorthold tenancy (AST) that started after 6 April 2007 (in England and Wales).

Deposit disputes

Contact the tenancy deposit protection scheme your landlord used if you cannot get your deposit back.

Houses in multiple occupation

Your home is a house in multiple occupation (HMO) if both of the following apply:

at least 3 tenants live there, forming more than 1 household

you share toilet, bathroom or kitchen facilities with other tenants

Your home is a large HMO if both of the following apply:

at least 5 tenants live there, forming more than 1 household

A household is either a single person or members of the same family who live together. A family includes people who are:

married or living together - including people in same-sex relationships

relatives or half-relatives, for example grandparents, aunts, uncles, siblings

step-parents and step-children

Standards, obligations and how to complain

If you live in a large HMO, your landlord must meet certain standards and obligations. Find out more about HMOs from Shelter.

Contact your local council to report hazards in your HMO. The council is responsible for enforcing HMO standards and can make a landlord take action to correct any problems.

Reclaim rent

All large HMOs need a licence from the local council.

You may be able to apply to a tribunal to reclaim some of your rent if your landlord has been prosecuted by the council for running an unlicensed HMO.

HMOs and coronavirus (COVID-19)

If you live in an HMO, you and all the other residents should:

follow the general guidance about staying at home and social distancing

behave in the same way as a single household if one of you has symptoms of coronavirus (COVID-19)

make sure all shared areas are cleaned regularly and kept well ventilated

Anti-social behaviour

Report anti-social behaviour to your local council.

Your council can take over the management of a property to stop anti-social behaviour.

It can also create a ‘selective licensing scheme’ if people in several houses in an area are behaving anti-socially. All landlords of properties in that area must then have a licence to show they’re meeting minimum standards.

Changes to a regulated tenancy

There are special rules for changing rents and terms for regulated tenancies (usually starting before 15 January 1989).

When your landlord can increase rent

Your landlord can only increase the rent up to the registered rent, which is the legal maximum set by a rent officer from the Valuation Office Agency (VOA). This is sometimes called ‘fair rent’.

Check the register of rents to find out if the rent is registered and how much it is.

You or your landlord can ask the VOA to review the rent so that it remains fair, usually every 2 years. You can request it sooner if there’s a major change to the home (for example, repairs or improvements).

Fill in the fair rent review form and send it to the address on the form.

If your rent increases

Your landlord must serve you a notice of increase of rent in writing. It must include details of the changes, for example how much the rent will increase by and when it will start.

Your landlord can do this with an official notice of increase form, which they can get from legal stationers.

An increase in rent may be backdated to the date of the notice, but it cannot be backdated by more than 4 weeks or to earlier than the date it’s registered.

If you think a registered rent increase is too high

You can appeal against the VOA’s decision to increase a registered rent by writing to the rent officer within 28 days of receiving it. You can appeal later but only if you have a good reason for the delay, for example if you’ve been in hospital.

The registered rent may be reconsidered by a tribunal - it will make a final decision on the rent limit for the property.

Cancel a registered rent

Download and fill in an application form to cancel a registered rent and send it to the address on the form (for example, if the tenancy stops being regulated, or you and your landlord agree to cancel it).

It may take up to 6 weeks to cancel a registered rent.

Complaints

Follow these steps if you have a problem with your landlord:

Complain to your landlord - they should have a complaints policy that you can follow.

Make a complaint to a ‘designated person’ (your MP, a local councillor or a tenant panel) if you cannot resolve the problem with your landlord.

Contact your council or local authority if you and your landlord still cannot resolve the problem.


I live in a rented property in England which needs repairs. The heating system is not working and the water pipes are leaking. The bathroom sink and taps are faulty and damaged. The house is currently unfit for living in. Who should I contact to do the repairs?

If your house is not fit to live in

Private renting

Your rights and responsibilities

You have certain rights and responsibilities if you’re a tenant in privately rented property.

Your rights

As a tenant, you have the right to:

live in a property that’s safe and in a good state of repair

have your deposit returned when the tenancy ends - and in some circumstances have it protected

challenge excessively high charges

know who your landlord is

live in the property undisturbed

see an Energy Performance Certificate for the property

be protected from unfair eviction and unfair rent

have a written agreement if you have a fixed-term tenancy of more than 3 years

If you have a tenancy agreement, it should be fair and comply with the law.

If you do not know who your landlord is, write to the person or company you pay rent to. Your landlord can be fined If they do not give you this information within 21 days.

When you start a new tenancy

When you start a new assured or short assured tenancy, your landlord must give you:

a copy of the How to rent guide if you live in England

a tenant information pack if you live in Scotland

Your responsibilities

You should give your landlord access to the property to inspect it or carry out repairs. Your landlord has to give you at least 24 hours’ notice and visit at a reasonable time of day, unless it’s an emergency and they need immediate access.

Coronavirus has not changed these rules, so you should work with your landlord to make sure that any visits are for an urgent reason (for example, you do not have hot water, heating or toilet facilities). Follow NHS guidelines if the visit must happen.

You can read the coronavirus and renting guidance for tenants and landlords.

You must also:

take good care of the property, for example turn off the water at the mains if you’re away in cold weather

pay the agreed rent, even if repairs are needed or you’re in dispute with your landlord

pay other charges as agreed with the landlord, for example Council Tax or utility bills

repair or pay for any damage caused by you, your family or friends

only sublet a property if the tenancy agreement or your landlord allows it

Coronavirus has not changed your responsibilities - continue to pay rent to the best of your ability and speak to your landlord if you cannot.

Your landlord has the right to take legal action to evict you if you do not meet your responsibilities.

If your landlord lives outside the UK

Contact HM Revenue and Customs (HMRC) if your landlord lives outside the UK and you pay £100 or more a week in rent directly to them.

You may have to deduct tax from your rent under HMRC’s ‘non-resident landlord scheme’.

Document checks

You must prove that you have a right to rent property in England if you’re:

starting a tenancy on or after 1 February 2016.

renting it as your main home.

Exemptions

You will not have to prove your right to rent if you live in:

student accommodation, for example halls of residence

accommodation provided by your employer as part of your job or training

social housing

accommodation provided by the council

hostels and refuges

a care home, hospital or hospice

accommodation with a lease of 7 or more years

Check the full list of exemptions from the right to rent property checks.

What your landlord must do

Your landlord (or letting agent) must:

check your documents to make sure you have the right to rent a property in England

check the documents of any other adults living in the property

make copies of your documents and keep them until you leave the property

return your original documents to you once they’ve finished the check

Because of coronavirus (COVID-19) there are temporary changes to the way your landlord can check documents. They might ask you to share your documents digitally and do the checks on a video call.

Read the list of acceptable documents.

Your landlord must not discriminate against you, for example because of your nationality.

If you cannot prove your right to rent

You will not be able to rent property if you cannot provide the acceptable documents.

If the Home Office has your documents

If the Home Office has your documents because of an outstanding case or appeal, ask your landlord to check with the Home Office.

Give your landlord your Home Office reference number to do the check.

If your circumstances mean you can still rent in the UK

In some circumstances, you can still rent even if you are not allowed to stay in the UK, for example if you’re:

a victim of slavery

using the Home Office’s voluntary departure scheme

Check with the Home Office team that’s dealing with your case.

Your landlord will have to check with the Home Office.

Repeat checks

You will not have a further check if you stay in the same property and one of the following applies:

you’re British

you’re an EU, EEA or Swiss citizen

you have no time limit on your right to stay in the UK

Your landlord will have to make a repeat check if there’s a time limit on your right to stay in the UK.

Your landlord will ask to see your documents again just before your permission to stay runs out, or after 12 months, whichever is longer.

Your landlord's safety responsibilities

Your landlord must keep the property you live in safe and free from health hazards.

Coronavirus has not changed these rules, so you should work with your landlord to make sure that any necessary checks happen safely. Follow NHS guidelines if a visit must happen in person.

Gas safety

Your landlord must:

make sure gas equipment they supply is safely installed and maintained by a Gas Safe registered engineer

have a registered engineer do an annual gas safety check on each appliance and flue

give you a copy of the gas safety check record before you move in, or within 28 days of the check

Electrical safety

Your landlord must make sure:

the electrical system is safe, for example sockets and light fittings

all appliances they supply are safe, for example cookers and kettles

Fire safety

Your landlord must:

follow safety regulations

provide a smoke alarm on each storey and a carbon monoxide alarm in any room with a solid fuel burning appliance (for example a coal fire or wood burning stove)

check you have access to escape routes at all times

make sure the furniture and furnishings they supply are fire safe

provide fire alarms and extinguishers if the property is a large house in multiple occupation (HMO)

Repairs

What your landlord must do

Your landlord is always responsible for repairs to:

the property’s structure and exterior

basins, sinks, baths and other sanitary fittings including pipes and drains

heating and hot water

gas appliances, pipes, flues and ventilation

electrical wiring

any damage they cause by attempting repairs

Your landlord is usually responsible for repairing common areas, for example staircases in blocks of flats. Check your tenancy agreement if you’re unsure.

Your responsibilities

You should only carry out repairs if the tenancy agreement says you can.

You cannot be forced to do repairs that are your landlord’s responsibility.

If you damage another tenant’s flat, for example if water leaks into another flat from an overflowing bath, you’re responsible for paying for the repairs. You’re also responsible for paying to put right any damage caused by your family and friends.

If your property needs repairs

Contact your landlord if you think repairs are needed. Do this straight away for faults that could damage health, for example faulty electrical wiring.

Your landlord should tell you when you can expect the repairs to be done. You should carry on paying rent while you’re waiting.

Coronavirus has not changed these rules, so you should work with your landlord to make sure that any urgent repairs happen safely. Follow NHS guidelines if the repair must happen.

If repairs are not done

Contact the environmental health department at your local council for help. They must take action if they think the problems could harm you or cause a nuisance to others.

Contact the Private Rented Housing Panel (PRHP) if you’re in Scotland.

If your house is not fit to live in

If you think your home’s unsafe, contact housing department at your local council. They’ll do a Housing Health and Safety Rating System (HHSRS) assessment and must take action if they think your home has serious health and safety hazards.

There are different:

housing standards and procedures in Scotland

housing standards and procedures in Northern Ireland

Rent increases

Your tenancy agreement should include how and when the rent will be reviewed.

There are special rules for increasing protected (sometimes known as ‘regulated’) tenancy rents.

When your landlord can increase rent

For a periodic tenancy (rolling on a week-by-week or month-by-month basis) your landlord cannot normally increase the rent more than once a year without your agreement.

For a fixed-term tenancy (running for a set period) your landlord can only increase the rent if you agree. If you do not agree, the rent can only be increased when the fixed term ends.

General rules around rent increases

For any tenancy:

your landlord must get your permission if they want to increase the rent by more than previously agreed

the rent increase must be fair and realistic, which means in line with average local rents

How your landlord must propose a rent increase

If the tenancy agreement lays down a procedure for increasing rent, your landlord must stick to this. Otherwise, your landlord can:

renew your tenancy agreement at the end of the fixed term, but with an increased rent

agree a rent increase with you and produce a written record of the agreement that you both sign

use a ‘Landlord’s notice proposing a new rent’ form, which increases the rent after the fixed term has ended

Your landlord must give you a minimum of one month’s notice (if you pay rent weekly or monthly). If you have a yearly tenancy, they must give you 6 months’ notice.

Rent disputes

You can apply to a tribunal to decide on certain rent disputes in England.

There are different ways to:

solve rent disputes in Scotland

solve rent disputes in Wales

solve rent disputes in Northern Ireland

Rent increase

You can only apply to the tribunal if:

you have an assured or assured shorthold tenancy

your rent’s been increased as part of a ‘section 13 procedure’ - the letter from your landlord will say if it has, and will tell you more about applying to the tribunal

You must apply before the new rent is due to start.

New rental terms

You can ask the tribunal to decide new rental terms when you renew your tenancy.

Rent set by rent officer

Contact the Valuation Office Agency if you have a regulated or protected tenancy.

If a rent officer has set your rent before, the only way to increase it is to have a rent officer set a new rent. If a rent officer has not set your rent before, they can set a rent limit. The landlord cannot charge more.

You can appeal against a rent officer’s decision. They may pass your case to a tribunal, which can make a final decision on the rent.

If you think your rent is high when you start a tenancy

You may be able to apply to the tribunal. Contact Citizens Advice for advice.

You must apply within 6 weeks of moving in.

Rent arrears

Your landlord can evict you if you fall behind with your rent - you could lose your home.

Coronavirus (COVID-19) has not changed this, but there are new rules that mean your landlord must give you at least 6 months’ notice if they plan to evict you, unless you owe at least 6 months’ rent. Read the coronavirus and renting guidance for tenants and landlords.

If you are unable to pay your rent due to coronavirus, speak to your landlord as soon as possible.

You can get advice if you’re in rent arrears or having difficulty paying your rent from:

Money Advice Service

Shelter

Citizens Advice

Deposits

You may have to pay a deposit before you move in. Contact your local council about possible rent or deposit guarantee schemes if you’re having difficulty paying the deposit.

Deposit protection

Your landlord must put your deposit in a government-approved tenancy deposit protection scheme if you have an assured shorthold tenancy (AST) that started after 6 April 2007 (in England and Wales).

Deposit disputes

Contact the tenancy deposit protection scheme your landlord used if you cannot get your deposit back.

Houses in multiple occupation

Your home is a house in multiple occupation (HMO) if both of the following apply:

at least 3 tenants live there, forming more than 1 household

you share toilet, bathroom or kitchen facilities with other tenants

Your home is a large HMO if both of the following apply:

at least 5 tenants live there, forming more than 1 household

A household is either a single person or members of the same family who live together. A family includes people who are:

married or living together - including people in same-sex relationships

relatives or half-relatives, for example grandparents, aunts, uncles, siblings

step-parents and step-children

Standards, obligations and how to complain

If you live in a large HMO, your landlord must meet certain standards and obligations. Find out more about HMOs from Shelter.

Contact your local council to report hazards in your HMO. The council is responsible for enforcing HMO standards and can make a landlord take action to correct any problems.

Reclaim rent

All large HMOs need a licence from the local council.

You may be able to apply to a tribunal to reclaim some of your rent if your landlord has been prosecuted by the council for running an unlicensed HMO.

HMOs and coronavirus (COVID-19)

If you live in an HMO, you and all the other residents should:

follow the general guidance about staying at home and social distancing

behave in the same way as a single household if one of you has symptoms of coronavirus (COVID-19)

make sure all shared areas are cleaned regularly and kept well ventilated

Anti-social behaviour

Report anti-social behaviour to your local council.

Your council can take over the management of a property to stop anti-social behaviour.

It can also create a ‘selective licensing scheme’ if people in several houses in an area are behaving anti-socially. All landlords of properties in that area must then have a licence to show they’re meeting minimum standards.

Changes to a regulated tenancy

There are special rules for changing rents and terms for regulated tenancies (usually starting before 15 January 1989).

When your landlord can increase rent

Your landlord can only increase the rent up to the registered rent, which is the legal maximum set by a rent officer from the Valuation Office Agency (VOA). This is sometimes called ‘fair rent’.

Check the register of rents to find out if the rent is registered and how much it is.

You or your landlord can ask the VOA to review the rent so that it remains fair, usually every 2 years. You can request it sooner if there’s a major change to the home (for example, repairs or improvements).

Fill in the fair rent review form and send it to the address on the form.

If your rent increases

Your landlord must serve you a notice of increase of rent in writing. It must include details of the changes, for example how much the rent will increase by and when it will start.

Your landlord can do this with an official notice of increase form, which they can get from legal stationers.

An increase in rent may be backdated to the date of the notice, but it cannot be backdated by more than 4 weeks or to earlier than the date it’s registered.

If you think a registered rent increase is too high

You can appeal against the VOA’s decision to increase a registered rent by writing to the rent officer within 28 days of receiving it. You can appeal later but only if you have a good reason for the delay, for example if you’ve been in hospital.

The registered rent may be reconsidered by a tribunal - it will make a final decision on the rent limit for the property.

Cancel a registered rent

Download and fill in an application form to cancel a registered rent and send it to the address on the form (for example, if the tenancy stops being regulated, or you and your landlord agree to cancel it).

It may take up to 6 weeks to cancel a registered rent.

Complaints

Follow these steps if you have a problem with your landlord:

Complain to your landlord - they should have a complaints policy that you can follow.

Make a complaint to a ‘designated person’ (your MP, a local councillor or a tenant panel) if you cannot resolve the problem with your landlord.

Contact your council or local authority if you and your landlord still cannot resolve the problem.

Private renting

Your rights and responsibilities

You have certain rights and responsibilities if you’re a tenant in privately rented property.

Your rights

As a tenant, you have the right to:

live in a property that’s safe and in a good state of repair

have your deposit returned when the tenancy ends - and in some circumstances have it protected

challenge excessively high charges

know who your landlord is

live in the property undisturbed

see an Energy Performance Certificate for the property

be protected from unfair eviction and unfair rent

have a written agreement if you have a fixed-term tenancy of more than 3 years

If you have a tenancy agreement, it should be fair and comply with the law.

When you start a new tenancy

When you start a new assured or short assured tenancy, your landlord must give you:

a copy of the How to rent guide if you live in England

a tenant information pack if you live in Scotland

Your responsibilities

You can read the coronavirus and renting guidance for tenants and landlords.

You must also:

take good care of the property, for example turn off the water at the mains if you’re away in cold weather

pay the agreed rent, even if repairs are needed or you’re in dispute with your landlord

pay other charges as agreed with the landlord, for example Council Tax or utility bills

repair or pay for any damage caused by you, your family or friends

only sublet a property if the tenancy agreement or your landlord allows it

Your landlord has the right to take legal action to evict you if you do not meet your responsibilities.

If your landlord lives outside the UK

Contact HM Revenue and Customs (HMRC) if your landlord lives outside the UK and you pay £100 or more a week in rent directly to them.

You may have to deduct tax from your rent under HMRC’s ‘non-resident landlord scheme’.

Document checks

You must prove that you have a right to rent property in England if you’re:

starting a tenancy on or after 1 February 2016.

renting it as your main home.

Exemptions

You will not have to prove your right to rent if you live in:

student accommodation, for example halls of residence

accommodation provided by your employer as part of your job or training

social housing

accommodation provided by the council

hostels and refuges

a care home, hospital or hospice

accommodation with a lease of 7 or more years

Check the full list of exemptions from the right to rent property checks.

What your landlord must do

Your landlord (or letting agent) must:

check your documents to make sure you have the right to rent a property in England

check the documents of any other adults living in the property

make copies of your documents and keep them until you leave the property

return your original documents to you once they’ve finished the check

Read the list of acceptable documents.

Your landlord must not discriminate against you, for example because of your nationality.

If you cannot prove your right to rent

You will not be able to rent property if you cannot provide the acceptable documents.

If the Home Office has your documents

If the Home Office has your documents because of an outstanding case or appeal, ask your landlord to check with the Home Office.

Give your landlord your Home Office reference number to do the check.

If your circumstances mean you can still rent in the UK

In some circumstances, you can still rent even if you are not allowed to stay in the UK, for example if you’re:

a victim of slavery

using the Home Office’s voluntary departure scheme

Check with the Home Office team that’s dealing with your case.

Your landlord will have to check with the Home Office.

Repeat checks

You will not have a further check if you stay in the same property and one of the following applies:

you’re British

you’re an EU, EEA or Swiss citizen

you have no time limit on your right to stay in the UK

Your landlord will have to make a repeat check if there’s a time limit on your right to stay in the UK.

Your landlord will ask to see your documents again just before your permission to stay runs out, or after 12 months, whichever is longer.

Your landlord's safety responsibilities

Your landlord must keep the property you live in safe and free from health hazards.

Gas safety

Your landlord must:

make sure gas equipment they supply is safely installed and maintained by a Gas Safe registered engineer

have a registered engineer do an annual gas safety check on each appliance and flue

give you a copy of the gas safety check record before you move in, or within 28 days of the check

Electrical safety

Your landlord must make sure:

the electrical system is safe, for example sockets and light fittings

all appliances they supply are safe, for example cookers and kettles

Fire safety

Your landlord must:

follow safety regulations

check you have access to escape routes at all times

make sure the furniture and furnishings they supply are fire safe

provide fire alarms and extinguishers if the property is a large house in multiple occupation (HMO)

Repairs

What your landlord must do

Your landlord is always responsible for repairs to:

the property’s structure and exterior

basins, sinks, baths and other sanitary fittings including pipes and drains

heating and hot water

gas appliances, pipes, flues and ventilation

electrical wiring

any damage they cause by attempting repairs

Your responsibilities

You should only carry out repairs if the tenancy agreement says you can.

You cannot be forced to do repairs that are your landlord’s responsibility.

If your property needs repairs

Your landlord should tell you when you can expect the repairs to be done. You should carry on paying rent while you’re waiting.

If repairs are not done

Contact the Private Rented Housing Panel (PRHP) if you’re in Scotland.

If your house is not fit to live in

There are different:

housing standards and procedures in Scotland

housing standards and procedures in Northern Ireland

Rent increases

Your tenancy agreement should include how and when the rent will be reviewed.

There are special rules for increasing protected (sometimes known as ‘regulated’) tenancy rents.

When your landlord can increase rent

General rules around rent increases

For any tenancy:

your landlord must get your permission if they want to increase the rent by more than previously agreed

the rent increase must be fair and realistic, which means in line with average local rents

How your landlord must propose a rent increase

If the tenancy agreement lays down a procedure for increasing rent, your landlord must stick to this. Otherwise, your landlord can:

renew your tenancy agreement at the end of the fixed term, but with an increased rent

agree a rent increase with you and produce a written record of the agreement that you both sign

use a ‘Landlord’s notice proposing a new rent’ form, which increases the rent after the fixed term has ended

Rent disputes

You can apply to a tribunal to decide on certain rent disputes in England.

There are different ways to:

solve rent disputes in Scotland

solve rent disputes in Wales

solve rent disputes in Northern Ireland

Rent increase

You can only apply to the tribunal if:

you have an assured or assured shorthold tenancy

You must apply before the new rent is due to start.

New rental terms

You can ask the tribunal to decide new rental terms when you renew your tenancy.

Rent set by rent officer

Contact the Valuation Office Agency if you have a regulated or protected tenancy.

You can appeal against a rent officer’s decision. They may pass your case to a tribunal, which can make a final decision on the rent.

If you think your rent is high when you start a tenancy

You may be able to apply to the tribunal. Contact Citizens Advice for advice.

You must apply within 6 weeks of moving in.

Rent arrears

Your landlord can evict you if you fall behind with your rent - you could lose your home.

If you are unable to pay your rent due to coronavirus, speak to your landlord as soon as possible.

You can get advice if you’re in rent arrears or having difficulty paying your rent from:

Money Advice Service

Shelter

Citizens Advice

Deposits

Deposit protection

Deposit disputes

Contact the tenancy deposit protection scheme your landlord used if you cannot get your deposit back.

Houses in multiple occupation

Your home is a house in multiple occupation (HMO) if both of the following apply:

at least 3 tenants live there, forming more than 1 household

you share toilet, bathroom or kitchen facilities with other tenants

Your home is a large HMO if both of the following apply:

at least 5 tenants live there, forming more than 1 household

A household is either a single person or members of the same family who live together. A family includes people who are:

married or living together - including people in same-sex relationships

relatives or half-relatives, for example grandparents, aunts, uncles, siblings

step-parents and step-children

Standards, obligations and how to complain

If you live in a large HMO, your landlord must meet certain standards and obligations. Find out more about HMOs from Shelter.

Reclaim rent

All large HMOs need a licence from the local council.

HMOs and coronavirus (COVID-19)

If you live in an HMO, you and all the other residents should:

follow the general guidance about staying at home and social distancing

behave in the same way as a single household if one of you has symptoms of coronavirus (COVID-19)

make sure all shared areas are cleaned regularly and kept well ventilated

Anti-social behaviour

Report anti-social behaviour to your local council.

Your council can take over the management of a property to stop anti-social behaviour.

Changes to a regulated tenancy

There are special rules for changing rents and terms for regulated tenancies (usually starting before 15 January 1989).

When your landlord can increase rent

Check the register of rents to find out if the rent is registered and how much it is.

Fill in the fair rent review form and send it to the address on the form.

If your rent increases

Your landlord can do this with an official notice of increase form, which they can get from legal stationers.

If you think a registered rent increase is too high

The registered rent may be reconsidered by a tribunal - it will make a final decision on the rent limit for the property.

Cancel a registered rent

It may take up to 6 weeks to cancel a registered rent.

Complaints

Follow these steps if you have a problem with your landlord:

Complain to your landlord - they should have a complaints policy that you can follow.

Contact your council or local authority if you and your landlord still cannot resolve the problem.