VAT

Do I need to register for VAT?

The threshold is £90,000 of taxable turnover in any rolling 12 months — not your tax year. Enter your last-12-months figure to see where you stand and when you'd have to register.

Your turnover
VAT-taxable sales in the last 12 months.

Below the threshold

£72,000.00

80% of the £90,000 threshold

You have £18,000.00 of headroom before the £90,000 threshold. Keep an eye on it as a rolling 12-month total, not a tax-year figure.

The two tests

You have to register if you fail either test — and the forward-look one is the surprise:

  • Backward look — taxable turnover over the last 12 months goes above £90,000. Register within 30 days of the end of that month.
  • Forward look — you expect to exceed £90,000 in the next 30 days alone (a single big contract, say). Register immediately, effective from the day you knew.

It's rolling, not annual

The most common mistake is treating the threshold as a tax-year total. It's a rolling 12-month window tested every month — so a strong autumn can tip you over even if the tax year as a whole looks comfortable.

Coming back down

Once registered, you can apply to deregister only when taxable turnover drops below £88,000.00 — deliberately lower than the registration line so a business near the threshold isn't flipping in and out month to month.

Common questions

What is the VAT registration threshold in 2026?

£90,000 of VAT-taxable turnover in any rolling 12-month period, since 1 April 2024. It's not your accounting year or the tax year — it's the total for the most recent 12 months, tested at the end of every month.

When exactly do I have to register?

There are two tests. The backward-look: if your taxable turnover over the last 12 months exceeds £90,000, you must register within 30 days of the end of that month. The forward-look: if you expect to exceed £90,000 in the next 30 days alone, you must register immediately — this one catches businesses that win a single large contract.

When can I deregister?

You can apply to deregister if your taxable turnover falls below £88,000. It's a slightly lower figure than the registration threshold, so a business hovering around the line doesn't flip in and out every month.

What counts as taxable turnover?

Only turnover from VAT-taxable supplies counts — standard, reduced and zero-rated sales. Genuinely exempt supplies (such as some financial or insurance services) and sales outside the scope of UK VAT don't count towards the threshold.

General information on UK VAT registration for 2026, not tax advice. Thresholds and the taxable-supply rules have exceptions — check your situation against HMRC guidance.