VAT (Value Added Tax) can feel confusing when you’re running a cleaning business, especially in the early stages. Knowing when to register helps you stay compliant and make smart financial decisions. Here’s a simple breakdown.
1️⃣ When VAT Registration Is Mandatory
You must register for VAT if your cleaning business’s taxable turnover exceeds £90,000 in any rolling 12-month period (current UK threshold).
This includes income from:
Domestic cleaning
Commercial contracts
One-off and recurring cleans
Once you cross the threshold, you must register within 30 days.
2️⃣ Voluntary VAT Registration — When It Makes Sense
You don’t have to wait until you hit the threshold. Some cleaning businesses register voluntarily.
This may be beneficial if:
You work mainly with VAT-registered commercial clients
You want to reclaim VAT on equipment, supplies, or vehicles
You want your business to appear more established for contracts
However, domestic clients usually cannot reclaim VAT, which can make your prices less competitive.
3️⃣ When VAT Registration May Not Be Ideal
VAT registration may not suit you if:
Most of your clients are homeowners
You’re focused on keeping prices low
Your turnover is well below the threshold
In these cases, staying non-VAT registered keeps pricing simpler.
4️⃣ What Happens After You Register
Once registered, you must:
Charge VAT on your services
Submit VAT returns (usually quarterly)
Keep accurate financial records
Many cleaning businesses use accounting software to manage this easily.
Final Thought
VAT registration isn’t about business size — it’s about turnover and strategy. Whether you register voluntarily or wait until required, understanding VAT helps you plan your growth confidently and avoid penalties.
Need help registering on your own? Send us an email to Cleaning@4dsphere.com now.
