WHITO GLOSSARY · MEASURED DEFINITIONS
The taxable turnover at which UK VAT registration becomes compulsory: £90,000, raised from £85,000 in April 2024. Reverse-charged overseas software counts towards it, which catches sole traders buying dollar-priced tools.
The number: UK Per-Seat Software Pricing.
What it means in practice
The trap is not the number; it is what counts towards it. Services bought from overseas under the reverse charge add to your taxable turnover, and no software vendor mentions this on a pricing page.
If you are within £10,000 of the line, total your overseas subscriptions before your accountant does. Crossing unknowingly is the expensive way to find out.
Whito stage: Any stage. Use it before you sign anything.
The numbers to hold onto
- The deregistration threshold rose to £88,000 at the same time. UK Per-Seat Software Pricing.
- Only 6 of 27 vendors selling to UK buyers state on the pricing page whether VAT is included. UK Per-Seat Software Pricing.
- Most UK agencies and freelancers are VAT registered, so add 20% to quoted marketing prices. UK Marketing Cost Calculator.
Where to go next
- The per-seat pricing study, where the trap lives
- The software waste index
- Check marketing quotes with VAT in mind
Related: Per-seat pricing, Software stack, The month-seven price