Postby Trevor S » Thu Nov 19, 2020 9:04 am
Assuming that you're either an approved test centre, or an unapproved garage that is meeting the disbursement criteria detailed here: https://www.gov.uk/hmrc-internal-manuals/vat-taxable-person/vtaxper48000, the MOT test fees are outside the scope of VAT.
This means that they don't count towards the £85,000 VAT registration threshold.
Bear in mind that the £85k is over a rolling 12 months, rather than being aligned to your accounting/tax year. So anyone who is close needs to be monitoring it regularly throughout the year.
(Although I assume this doesn't apply to you - for completeness, where an unapproved garage takes their customers' vehicles to an approved test centre, but fails to meet the disbursement criteria above, the MOT charges would be subject to VAT and count towards the registration threshold.)