VAT · registration threshold 2026

Do I need to register for VAT?

The UK VAT registration threshold is £90,000. If your taxable turnover over any rolling 12‑month period goes over it, registration stops being optional. Enter your turnover below to see exactly where you stand, when the clock starts, and the date HMRC would register you from.

Where am I against the threshold?

Use the total value of your taxable sales in the last 12 months — a rolling window, not your accounting year or the tax year. It's a running total that you check at the end of every month.

Taxable turnover in the last 12 months Everything you sell that isn't VAT-exempt — including zero-rated sales. Exclude exempt income (e.g. most rent, insurance) and anything outside the scope of UK VAT.

I expect to go over £90,000 in the next 30 days alone — e.g. one large contract landing this month

The two tests that trigger registration

The backward look. At the end of each month, add up your taxable turnover for the previous 12 months. If it's over £90,000, you must register — you have 30 days from the end of that month to do it, and HMRC registers you from the first day of the second month after you went over.
The forward look. If at any point you expect your taxable turnover to exceed £90,000 in the next 30 days on its own, you must register by the end of that 30‑day period — and your effective date is the day you realised, not the day sales actually crossed the line.

Whichever test you hit first is the one that counts. Once you know your current-year profit is heading north, it's worth modelling the tax alongside it — our free tax bill calculator shows the Income Tax and National Insurance side, and sole trader vs limited shows whether the structure still fits at your new size.

What counts as “taxable turnover”?

Taxable turnover is the total value of everything you sell that is not exempt from VAT. That includes standard-rated (20%), reduced-rated (5%) and zero-rated (0%) sales — zero-rated still counts, even though no VAT is charged. It does not include VAT-exempt income (such as most residential rent, insurance or certain finance), or supplies that are outside the scope of UK VAT.

Don't get caught by a one-off spike

The rolling 12‑month total is what matters, so a single big invoice can tip you over even if your normal run-rate is well under. If you go over only temporarily and can show HMRC your turnover will drop back below £88,000 in the next 12 months, you can apply for an exception from registering — but you have to ask, and get it agreed, before the deadline.

Registering early on purpose

You can register voluntarily before you hit £90,000. It lets you reclaim VAT on your costs and can look more established to larger clients — but it also means adding 20% to your prices (or absorbing it), filing VAT returns, and keeping digital records under Making Tax Digital for VAT. If most of your customers are consumers who can't reclaim VAT, registering early usually just makes you more expensive.

If you're already registered and your taxable turnover falls below £88,000, you can ask HMRC to cancel your registration.

More free tools

Estimate your tax bill →Income Tax and Class 4 NI on your self-employed profit. Sole trader vs limited →See if going limited keeps more of your money. Am I in MTD? →Check whether Making Tax Digital for Income Tax applies to you yet.

Common questions

What is the VAT registration threshold for 2026?

£90,000. You must register for VAT if your taxable turnover over any rolling 12-month period goes over £90,000, or if you expect it to exceed £90,000 in the next 30 days alone.

Is the threshold based on the tax year?

No. It's a rolling 12-month total that you check at the end of every month — not your accounting year and not the 6 April to 5 April tax year. Any 12 consecutive months that add up to more than £90,000 triggers it.

How long do I have to register once I go over?

Under the backward-look test you must register within 30 days of the end of the month you went over, and HMRC registers you from the first day of the second month after. Under the forward-look test you register by the end of the 30-day period, effective from the day you realised you would exceed the threshold.

Does zero-rated income count towards the threshold?

Yes. Taxable turnover includes standard-rated, reduced-rated and zero-rated sales. Only VAT-exempt income and supplies outside the scope of UK VAT are left out.

Can I deregister if my turnover drops?

Yes. If your taxable turnover falls below the £88,000 deregistration threshold, you can ask HMRC to cancel your VAT registration.

Growing past the threshold? Keep the numbers straight.

Crossing £90,000 is a good problem — but it means more tax, more admin and more to track. Our toolkit keeps the figures under control so growth doesn't turn into a January surprise.

Self Assessment Tax Estimator 2026/27 — know your Income Tax and NI before HMRC does.
Rental Property ROI & Yield Calculator — including Section 24 and a rate stress test.
Freelance Day-Rate & Profit Calculator — works backwards from the take-home you want.
Invoice Tracker & Log — auto paid/outstanding/overdue, with a chase list.

Excel and Google Sheets. Working formulas, not just formatting. Built and checked by us, with AI assistance, and every calculation verified.

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