VAT Registration

You need to be VAT registered. Technically, VAT registration is only mandatory once your taxable turnover exceeds the threshold, but in practice, if you're running a brewery with any ambition beyond a hobby, you'll hit that threshold quickly. And if you choose not to register — staying deliberately small to avoid it — you're choosing to live on a tiny salary.

Being below the VAT threshold means your turnover is so low that after costs, rent, loan repayments, ingredients, utilities, software, insurance, and everything else, there's precious little left for you. VAT registration isn't just a compliance obligation — it's a practical necessity if you want the business to actually pay you a living.

Once registered, you're filing quarterly returns, keeping meticulous records, and managing the cash flow implications of collecting VAT on sales while reclaiming it on purchases. Get it wrong, file late, or pay late, and HMRC are on your case again with penalties and interest.