You must register for VAT when your taxable turnover goes over £90,000 in any rolling 12 month period. You also have to register if you expect to go over £90,000 in the next 30 days on its own. The threshold has been £90,000 since 1 April 2024.
Use the threshold tracker to see how close your turnover is to the limit.
[ VAT threshold tracker tool sits here: enter your rolling 12 month turnover and see your headroom and the date you would need to register. ] (tool embeds here)
What the VAT threshold is
The VAT registration threshold is the turnover level set by HMRC. Once your taxable turnover passes it, you have to register for VAT, start charging VAT on your sales, and send VAT returns.
For 2026 the figures are:
| Limit | Amount |
|---|---|
| Registration threshold | £90,000 |
| Deregistration threshold | £88,000 |
[ Infographic: When you must register for VAT ]
Brief: a simple path showing rolling 12 month turnover rising toward the £90,000 line, with the point where registration is required and the 30 day notice window.
Alt text: Rolling 12 month turnover reaching the £90,000 VAT registration threshold and the 30 day deadline to tell HMRC.
Caption: Register once your rolling 12 month turnover passes £90,000.
The rolling 12 month test
The £90,000 test is not based on a tax year or a calendar year. It uses a rolling 12 month period. That means you add up your taxable turnover for the last 12 months at the end of every month.
If that running total goes over £90,000, you must tell HMRC within 30 days of the end of the month you went over. Your registration then starts on the first day of the second month after you crossed the limit.
For example, if your total first passes £90,000 at the end of September, you must register by the end of October, and your registration starts on 1 November.
The 30 day future test
There is a second test that catches sudden growth. If you expect your taxable turnover to go over £90,000 in the next 30 days alone, you must register straight away.
This often applies after a single large order. Say you sign a £95,000 contract due within the month. You must register at that point, not wait for a 12 month total to build up.
What counts toward the threshold
Taxable turnover means your sales that would have VAT on them, at any rate. This includes:
- Standard rated sales at 20%
- Reduced rated sales at 5%
- Zero rated sales at 0%
Zero rated sales still count, even though the VAT on them is nil.
What does not count
Some income does not count toward the threshold:
- VAT exempt sales, such as insurance or some education
- Income that is outside the scope of VAT
- Money from selling capital assets you used in the business
When you should register before you have to
Plenty of businesses register before they reach £90,000. This is called voluntary registration.
It can pay off if you sell mainly to other VAT registered businesses, because they can claim the VAT back, so the price rise does not hurt them. It also lets you reclaim the VAT on your own costs. If you sell mainly to the public, the 20% rise can make you dearer than rivals who are not registered, so the choice needs more thought.
The deregistration threshold
You can ask HMRC to cancel your registration if your taxable turnover falls below £88,000 in the next 12 months. This is the deregistration threshold. You do not have to deregister. It is a choice, and it suits a business that has shrunk or changed what it sells.
How to register for VAT
Most businesses register online through GOV.UK. See our step by step guide on how to register for VAT. You will need details such as your turnover, your business type and your bank details. HMRC usually sends your VAT number within a few working days. From your start date you must charge VAT and keep digital records under Making Tax Digital.
Frequently asked questions
What is the VAT registration threshold for 2026? The threshold is £90,000 of taxable turnover in any rolling 12 month period.
When do I have to register for VAT? You must register once your taxable turnover goes over £90,000 in any rolling 12 month period, or when you expect to pass £90,000 in the next 30 days on its own.
What is the VAT deregistration threshold? It is £88,000. You can apply to cancel your registration if your taxable turnover will fall below this in the next 12 months.
Does zero rated turnover count toward the threshold? Yes. Zero rated sales count as taxable turnover, even though no VAT is charged on them.
Can I register for VAT below the threshold? Yes. This is voluntary registration. It can help if you sell to other VAT registered firms or want to reclaim VAT on your costs.
What happens if I register late? You still owe HMRC the VAT from the date you should have registered, plus possible interest and a penalty. Telling HMRC before they find it keeps any penalty lower.