Last updated: 14 October 2026
Do you need to register for VAT with £92,000 turnover?
Yes, if £92,000 is your taxable turnover in the last 12 months. The VAT registration threshold has been £90,000 since 1 April 2024. If your rolling 12-month taxable turnover goes over £90,000, you must register within 30 days of the end of that month. You also must register straight away if you expect turnover in the next 30 days alone to exceed £90,000.
The rolling 12-month test
You check at the end of every month. It’s not based on the tax year or your accounting year.
| Test | When to register |
| Taxable turnover in last 12 months over £90,000 | Within 30 days of the end of that month |
| Expected turnover in the next 30 days alone over £90,000 | By the end of that 30 days |
| Turnover drops below £88,000 | You can deregister |
Example
Ellis runs a catering business. His taxable turnover for the 12 months to 31 October 2026 reaches £92,000. He must register by 30 November 2026, and his VAT registration date is 1 December 2026. He must charge VAT on sales from that date.
What counts as taxable turnover
- Standard-rated, reduced-rated and zero-rated sales
- Not exempt sales, such as insurance or residential rent
- Not sales outside the scope of UK VAT
If your turnover goes over only temporarily
You may be able to apply for an exception if your turnover will drop back below £88,000 in the next 12 months. You need to write to HMRC with evidence, such as a one-off contract.
Registering late
If you register late, HMRC will backdate your registration to when you should have registered. You’ll owe the VAT on sales from that date, even if you didn’t charge it. Late registration penalties can be up to 100% of the VAT owed, depending on how late you are and whether it was careless or deliberate.
Voluntary registration
You can register below £90,000 if you sell mainly to VAT-registered businesses or buy a lot of goods with VAT. You can reclaim VAT on costs, but must charge VAT to customers.
Schemes after registering
- Flat Rate Scheme: a fixed percentage of turnover, for businesses with turnover up to £150,000
- Cash accounting: account for VAT when paid, up to £1.35m
- Annual accounting: one return a year
All VAT-registered businesses must keep digital records and file returns using Making Tax Digital software.
Reclaiming pre-registration VAT
You can reclaim VAT on goods you still hold bought up to 4 years before registration, and services bought in the 6 months before.
Deregistering
If your taxable turnover falls below £88,000, you can ask HMRC to cancel your registration. You must account for VAT on any stock and assets you still hold if the VAT would be over £1,000. Many businesses that sell to other VAT-registered businesses choose to stay registered.
Frequently asked questions
Does the old £85,000 threshold still apply?
No, it rose to £90,000 on 1 April 2024.
Do I need to register if I’m a sole trader?
Yes, the same threshold applies.
Can I avoid registering by splitting my business?
HMRC can treat linked businesses as one.
Is turnover gross or net?
Gross sales, not profit.
Related: VAT for the self-employed, VAT on equipment bought before registering and a call from the VAT office.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with checking your VAT threshold and registering on time. See our VAT accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
