The UK VAT registration threshold is £90,000 of taxable turnover, and it has been since 1 April 2024. The Autumn Budget on 28 October 2026 left both the threshold and the standard VAT rate unchanged, according to Clive Owen and Sage. If your business is growing, the more useful question is not what the number is but how and when you are expected to check it.
The VAT numbers at a glance
| Item | Figure or rule |
|---|---|
| Registration threshold | £90,000 of VAT taxable turnover |
| Deregistration threshold | £88,000 |
| Look-back test | Rolling 12 months, checked at the end of every month |
| Forward-look test | Expecting to pass £90,000 in the next 30 days alone |
| Time to register after the look-back test | Within 30 days of the end of the month you went over |
These figures match the HMRC guidance on registering for VAT and the summaries published by firms such as Azets and Simply Business.
The two tests that decide when you must register
Test 1: the rolling 12-month look-back. At the end of every month, add up your VAT taxable turnover for the previous 12 months. This is a rolling window, not your accounting year or the tax year. If the total is over £90,000, you must register. Simply Business gives an example: if your turnover passes £90,000 on 15 July, you must register by 30 August and your effective registration date is 1 September.
Test 2: the 30-day forward look. You must also register if you expect your taxable turnover in the next 30 days alone to go over £90,000, for example because you have won one very large contract. HMRC’s guidance says you must register by the end of that 30-day period.
| Situation | Deadline to tell HMRC | You charge VAT from |
|---|---|---|
| 12-month turnover goes over £90,000 | Within 30 days of the end of that month | The first day of the second month after you went over |
| You expect to pass £90,000 in the next 30 days | By the end of that 30-day period | The date you realised |
| You register voluntarily below the threshold | Whenever you choose | Your chosen date or the date HMRC processes it |
Those timings follow the practical summaries from Ibiss and Co and Simply Business. Always confirm your own dates with HMRC.
What counts as taxable turnover
Turnover means the money your business takes before you subtract expenses or tax, as the government’s Tax Confident guidance explains. It is not profit. Sales that are exempt from VAT do not count towards the total, while ordinary standard-rated sales do. If you sell a mix of goods and services, split your sales by VAT treatment so you can see the figure that matters. A simple monthly rolling total in a spreadsheet works well, and our guides to small business bookkeeping and building a cash flow forecast show how to keep that tidy.
Should you register voluntarily
You can register before you hit £90,000. The main attraction is that registered businesses can usually reclaim VAT on business purchases, which can matter if you sell mainly to other VAT-registered businesses. The main drawback is that you must charge VAT on most sales, which can make your prices look 20% higher to customers who cannot reclaim it, such as consumers. Because the right answer depends on your customers and costs, talk to an accountant. We are not licensed tax advisers.
More in Business
What changed in the Autumn Budget 2026
The registration threshold did not move, but there was news for online sellers. Reports from The Accountancy, Clive Owen and Osome say online marketplaces such as Amazon and eBay will have to collect VAT on sales by UK businesses that are VAT-registered or reach £90,000 of sales on a single platform. Personal sales, second-hand goods and business-to-business sales are excluded. The Accountancy says this starts in October 2027, although ICAEW notes that further details are still needed. It also warns that a seller could be above £90,000 in total while staying below that figure on each individual marketplace, so the overall turnover test still applies.
If you are starting out, our beginner’s guide to selling online covers the practical side, and our Autumn Budget 2026 summary lists the other changes. This is separate from the Making Tax Digital for Income Tax deadlines, which apply to a different tax.
Deregistering and late registration
If your taxable turnover falls below £88,000 you can ask HMRC to cancel your registration, and you should cancel within 30 days if you stop being eligible, otherwise you may face a penalty. Registering late can also lead to penalties and backdated VAT bills, as Azets and TinyTax warn, so it is better to act early than to guess.
Frequently asked questions
Has the VAT threshold changed for 2026/27?
No. The registration threshold stays at £90,000 and the deregistration threshold at £88,000, as confirmed for April 2026 and left unchanged by the October 2026 Budget.
Is the VAT threshold based on profit?
No. It is based on your VAT taxable turnover, which is your sales before you deduct costs.
Do I have to wait until the end of the tax year to check?
No. You check at the end of every month using the previous 12 months, whatever your year end.
Can I register for VAT before I reach £90,000?
Yes, voluntary registration is allowed. Weigh up reclaiming VAT on costs against charging VAT to customers.
Sources checked: HMRC guidance on registering for VAT, Clive Owen, Sage, The Accountancy, ICAEW, Osome, Azets, Simply Business, Ibiss and Co and TinyTax. This guide is general information, not tax advice.
