Must you register for VAT? You have to once your rolling 12-month taxable turnover passes £90,000. Enter your turnover to see whether you've crossed it and how much headroom is left.
Rolling 12-month turnover · 2026/27
You're legally required to register for VAT once your taxable turnover exceeds £90,000 in any rolling 12-month period — not just your accounting year. You must also register if you expect to cross £90,000 in the next 30 days alone. The threshold rose from £85,000 to £90,000 in April 2024 and remains £90,000 for 2026/27.
| Threshold | Amount 2026/27 |
|---|---|
| Registration threshold | £90,000 |
| Deregistration threshold | £88,000 |
| Time to register after crossing | 30 days |
You can register voluntarily below £90,000. It's worth it if you sell mostly to VAT-registered businesses (who reclaim the VAT) or buy a lot of standard-rated supplies you could reclaim VAT on. But if you sell to consumers, charging 20% VAT can make you less competitive. Weigh it up alongside the flat rate scheme, which can simplify things for smaller firms.
Once registered you charge VAT on sales, reclaim VAT on purchases, and file returns (usually quarterly) under Making Tax Digital. If turnover later falls below £88,000 you can deregister. For second-hand goods, the margin scheme may cut your VAT bill substantially.
The VAT registration threshold for 2026/27 is £90,000 of taxable turnover in any rolling 12-month period.
You must register once taxable turnover passes £90,000 in any rolling 12 months — below that, registration is voluntary.
The deregistration threshold is £88,000 — if turnover falls below it and is expected to stay there, you can deregister.
It's based on taxable turnover (sales), not profit. Zero-rated sales count; VAT-exempt sales don't.
