VAT is one of those topics that makes a lot of self-employed cleaners nervous — but it doesn't need to be. This plain-English guide explains everything you need to know about VAT as a cleaning business in the UK: when you need to register, how to charge it correctly, and how to avoid the most common mistakes.
Do I need to register for VAT?
You must register for VAT when your VAT taxable turnover exceeds £90,000 in any rolling 12-month period. This is the current threshold set by HMRC. Taxable turnover means the total value of everything you sell that isn't exempt from VAT — for most cleaning businesses, this is simply your total revenue.
If your turnover is below £90,000, you don't have to register — but you can choose to register voluntarily. This can be beneficial if your clients are VAT-registered businesses, as they can reclaim the VAT you charge them.
⚠️ Important: Monitor your turnover closely
You must register within 30 days of the end of the month in which you exceeded the threshold. Failing to register on time can result in penalties from HMRC. If you're approaching £90,000 in turnover, start planning now.
What VAT rate applies to cleaning services?
Standard domestic and commercial cleaning services are subject to the standard VAT rate of 20%. This means if you charge a client £100 for a clean, you add £20 VAT on top, making the total £120. The £20 is collected on behalf of HMRC and must be paid to them when you file your VAT return.
There are some exceptions — for example, certain cleaning services related to new residential construction may qualify for the reduced rate — but for the vast majority of cleaning businesses, 20% is the applicable rate.
How to include VAT in your cleaning quotes
If you're VAT-registered, every quote and invoice must clearly show:
- Your VAT registration number
- The net amount (before VAT)
- The VAT amount (20%)
- The gross total (including VAT)
GoClean handles this automatically. When you enable VAT in the app settings, every quote and PDF automatically includes the net amount, VAT calculation, and gross total — so you never have to do the maths manually or worry about forgetting to include it.
The VAT Flat Rate Scheme — is it worth it?
The VAT Flat Rate Scheme (FRS) is designed to simplify VAT accounting for small businesses. Instead of calculating the difference between VAT you've charged and VAT you've paid on purchases, you simply pay a fixed percentage of your gross turnover to HMRC.
For cleaning businesses, the flat rate is typically 12% of gross (VAT-inclusive) turnover. Since you're charging clients 20% VAT but only paying 12% to HMRC, you keep the difference — which can add up to a meaningful amount. However, you can't reclaim VAT on most purchases under this scheme, so it's worth calculating whether it benefits your specific situation. Speak to an accountant if you're unsure.
Making Tax Digital for VAT
All VAT-registered businesses must now comply with Making Tax Digital (MTD) for VAT. This means you must keep digital records and submit your VAT returns using compatible software — you can no longer submit manually via the HMRC website. Software like Xero, QuickBooks, or FreeAgent all support MTD.
Common VAT mistakes cleaning businesses make
- Not registering on time — HMRC can charge backdated VAT plus penalties
- Forgetting to include VAT on quotes — this can create disputes with clients who weren't expecting the extra cost
- Not keeping digital records — required under MTD for VAT
- Confusing gross and net amounts — always be clear whether your quoted price includes or excludes VAT
The simplest way to avoid VAT mistakes on your quotes is to use a tool that handles it for you. Try GoClean free today →
Want to make sure you're charging the right rates in the first place? Read our complete guide on how to price cleaning jobs in the UK.