Calculating VAT registration Turnover

Hi, When assessing income to see if the VAT registration threshold has been exceeded (12 month look back test), do you assess your income based upon the physical cash received by the business, or based upon the invoices raised by the business? Many thanks.

Hi David Cozens,
The VAT registration threshold is based on taxable supplies not on payments received.
Please refer to notice 700/1 section 3.4 for guidance on working out the value of your taxable supplies
3.4 Working out the value of your taxable supplies
Thank you.