VAT can feel like a mystery when you’re running a tattoo studio or working as an independent artist. The truth is, it’s simpler than most people think — but you do need to know when it applies, and what happens once you’re registered. Here’s a plain-English breakdown.
When do you need to register for VAT?
You must register for VAT when your taxable turnover — basically your total sales, not profit — goes over £90,000 in a 12-month period. It’s a rolling total, so it doesn’t reset each tax year. If your business is getting close to that number, it’s time to prepare.
You can also register voluntarily before hitting the threshold. Some studios do this so they can reclaim VAT on supplies and equipment, especially if they buy a lot of stock or refit their space.
What happens once you’re VAT registered?
Once you’re registered, you’ll charge VAT on your services — usually at 20% — and submit VAT returns every quarter. You’ll also be able to reclaim VAT on business purchases, like inks, needles, gloves, and even studio rent if your landlord charges VAT.
From that point on, you’ll need to keep proper digital records. Paper receipts and spreadsheets aren’t enough anymore — everything has to be stored and submitted through approved software.
Making Tax Digital for VAT
HMRC’s Making Tax Digital (MTD) rules mean VAT returns must be submitted using compatible software. That’s where FreeAgent comes in — it connects directly to HMRC, tracks your invoices, expenses, and VAT in real time, and handles submissions automatically.
“Once we switched to FreeAgent with Nanoswift, VAT returns stopped being a headache. Everything’s already there — I just click submit.” — Lisa, Studio Owner
How Nanoswift helps
We specialise in helping tattoo artists and studios stay compliant without the jargon. Whether you’re about to hit the VAT threshold or you’re already registered and struggling with quarterly returns, we’ll set you up on FreeAgent, automate your records, and make sure you never miss a submission.
Get in touch if you’d like us to check your VAT position or help you go digital.