The 30-day forward look

What the forward look is

At any time, if you have reasonable grounds to expect that your taxable turnover in the next 30 days alone will exceed £90,000, you must register for VAT immediately. This is entirely separate from the rolling 12-month backward-look test. VAT Notice 700/1

How it differs from the rolling test

• Timing. The backward look is checked at each month-end. The forward look fires the moment your expectation forms.
• Effective date. Under the forward look, registration takes effect from the date you realised — not the end of the 30 days, and not the start of a later month.
• Trigger. A single large confirmed contract can meet the forward-look test on its own, even if your rolling 12-month total is nowhere near the threshold.

A worked example

Suppose your rolling 12-month turnover is a steady £40,000. In June you sign a one-off contract worth £95,000 to be delivered within 30 days. The forward-look test is met on the day you sign — you must register from that date, even though your backward-look total is well under £90,000.

You can model this in the tracker: switch on the forward-look test and enter your expected next-30-days figure.

Once registered either way, your next steps are Making Tax Digital and choosing whether the Flat Rate Scheme suits your trade.