Last updated: 14 October 2026
What is the VAT registration threshold in 2026/27?
The UK VAT registration threshold is £90,000 of taxable turnover in any rolling 12-month period. It has applied since 1 April 2024. You must register if you go over it, or if you expect to go over it in the next 30 days alone. The deregistration threshold is £88,000. Non-UK businesses making taxable supplies in the UK have no threshold and must register from their first sale.
How the threshold works
The “backward look” test
At the end of every month, add up your taxable turnover for the last 12 months. If it is more than £90,000, register within 30 days of the end of that month. Your registration starts on the first day of the second month.
The “forward look” test
If you expect taxable turnover of more than £90,000 in the next 30 days alone, for example from a big contract, register by the end of that 30-day period.
Example
A shop’s rolling 12-month turnover goes past £90,000 at the end of July. It must register by 30 August, and VAT applies from 1 September.
What counts as taxable turnover
| Included | Not included |
| Standard, reduced and zero-rated sales | Exempt sales, such as residential rent, insurance and some education |
| Goods and services sold in the UK | Sales outside the scope of UK VAT |
| Hire or loan of goods | Capital asset sales (excluded from the test) |
History of the threshold
| From | Threshold |
| 1 April 2017 to 31 March 2024 | £85,000 |
| 1 April 2024 | £90,000 |
Temporary exceptions
If you go over the threshold temporarily, for example because of a one-off sale, you can ask HMRC for an exception if you expect turnover to fall back below £88,000 in the next 12 months.
Late registration
If you register late, you must pay the VAT you should have charged from the date you should have registered. You may also face a penalty based on the VAT due. Register as soon as you realise.
Voluntary registration
You can register voluntarily below £90,000. It is often worthwhile if your customers are VAT-registered or you have large VAT-able costs.
Merged guidance
This page now covers the related questions “When exactly will I have to register for VAT?” and “When should a business register for VAT?”.
Common VAT registration mistakes
Businesses often register with the wrong effective date, or the wrong business type, which causes problems with HMRC later. Check each detail carefully before you submit. Choose your VAT return periods with your financial year in mind, and set up MTD software before your first return is due.
A further example
A café’s turnover passes £90,000 at the end of May. It must register by 30 June, with VAT applying from 1 July. You can also register voluntarily below £90,000, which lets you reclaim VAT on costs but means you must charge VAT to customers.
Frequently asked questions
Is the threshold based on profit or turnover?
Turnover, meaning total taxable sales.
Does the threshold apply per business?
It applies per legal person. A sole trader’s businesses are combined.
Is the threshold the same in Scotland, Wales and Northern Ireland?
Yes.
How do I register?
Related: VAT for the self-employed.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with VAT registration. 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.
