Can I Reclaim VAT on a New Website? UK Rules and Worked Examples

Only if your business is registered for VAT. A VAT-registered business can reclaim the VAT it pays on a website bought for the business, which on a standard-rated £1,495 build is £299 back. A business that is not registered cannot reclaim anything, so to you the VAT is simply part of the price. The registration threshold is £90,000 of taxable turnover over 12 months, and most sole traders and micro businesses sit below it.

Can I claim VAT back on a new website?

Yes, if you are VAT registered and the website is for your business. HMRC’s guidance on charging, reclaiming and recording VAT covers reclaiming VAT on business expenses, and a website bought to run the business is a business expense like any other. You reclaim it on your VAT return, and you need a proper VAT invoice from your web designer to do it. That invoice must show their VAT number and show the VAT separately.

What if my business is not VAT registered?

Then you cannot reclaim VAT, and any VAT a supplier charges you is a real cost. This is the single biggest thing to understand when comparing website quotes. A quote of “£1,495 plus VAT” from a VAT-registered agency costs a non-registered business £1,794, because the £299 of VAT never comes back.

So always ask whether a price includes VAT, and if you are not registered, compare the totals rather than the headline figures.

How much is VAT on a website?

20%, the standard rate, which applies to most goods and services including web design. Worked examples, if the designer is VAT registered:

If the designer is not VAT registered, they cannot charge VAT at all, so there is nothing to add and nothing to reclaim.

Should I register for VAT just to reclaim it on my website?

Usually not for that reason alone. You can register voluntarily below the £90,000 threshold, but once registered you must charge VAT on what you sell and file VAT returns through Making Tax Digital. For a business selling to the public, that can mean either putting prices up by 20% or absorbing the VAT out of your margin. Reclaiming £299 once is rarely worth that on its own. For a business selling mainly to other VAT-registered businesses, the sums can come out differently, which is worth a conversation with your accountant.

When do I have to register for VAT?

According to HMRC’s guide to registering for VAT, you must register if your taxable turnover for the last 12 months goes over £90,000, or you expect it to go over £90,000 in the next 30 days. You then have 30 days from the end of the month you went over. Turnover here means taxable turnover, the total of everything you sell that is not VAT exempt or outside the scope of VAT.

Can I reclaim VAT on website hosting and a domain?

If you are VAT registered and the supplier charged you VAT, yes, in the same way. Many hosting companies and registrars charge VAT; some overseas providers do not charge UK VAT on their invoices, in which case there may be nothing on the invoice to reclaim. Check what each invoice actually shows.

Do website prices have to say whether they include VAT?

For a site that sells online, yes. Regulation 6(2) of the Electronic Commerce Regulations 2002 says that where prices are shown they must be clear and unambiguous and indicate whether they include tax. It is also simply the fair thing to do for anyone comparing quotes.

For what it is worth, Hire The Creatives is not VAT registered, so no VAT is added to any of our prices. A £1,495 site from us costs £1,495 whether or not your own business is registered, and the price on our website cost calculator is the price you pay.

General information based on HMRC’s published guidance as at 22 October 2026, not tax advice for your circumstances.

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