Answers · UK 2025/26

Do I have to register for VAT when my turnover hits £90,000?

Yes. For 2026/27 the compulsory VAT registration threshold is £90,000 of VAT-taxable turnover in any rolling 12-month period. Once you cross it you must register with HMRC within 30 days, start charging 20% VAT on standard-rated sales, and submit VAT returns, usually quarterly.

Last updated: 7 June 2026Last reviewed: 7 June 2026How we verify

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VAT registration becomes compulsory once your VAT-taxable turnover exceeds £90,000 in any rolling 12-month period, which is the threshold for 2026/27. It is not the calendar or tax year that matters but any consecutive 12 months, so you must check your running total every month. You must also register if you expect to go over £90,000 in the next 30 days alone. Once registered you charge 20% VAT on standard-rated sales (the output tax), reclaim VAT on eligible business purchases (the input tax), and pay HMRC the difference, normally through quarterly VAT returns under Making Tax Digital. You must register within 30 days of the end of the month in which you crossed the threshold, and late registration can mean penalties plus paying the VAT you should have charged. There is a deregistration threshold of £88,000 if your turnover falls. Some businesses register voluntarily below £90,000 to reclaim input VAT or to look more established, which makes sense if your customers are themselves VAT-registered and can reclaim the VAT you charge. If you sell mainly to consumers, registering early raises your effective prices by 20% unless you absorb the cost. Small businesses can consider the Flat Rate Scheme, which simplifies returns by paying a fixed percentage of gross turnover, or the Annual Accounting and Cash Accounting schemes. Keep a close eye on turnover as you approach the limit, because a single large order can tip you over. Use the VAT calculator to work out the VAT on your sales and the net and gross figures.