Answers · UK 2025/26
What is the VAT registration threshold UK 2025?
The VAT registration threshold is £90,000 of VATable turnover in any rolling 12-month period from 1 April 2024. If your taxable sales exceed or are about to exceed £90,000 you must register within 30 days. The deregistration threshold is £88,000.
Full answer
From 1 April 2024 the threshold rose from £85,000 to £90,000 — the first increase in seven years. "VATable turnover" means total sales of goods and services subject to VAT (standard 20%, reduced 5% or zero 0%), not exempt supplies. You must register if: (a) your taxable turnover for the past 12 calendar months exceeded £90,000; or (b) you expect it to exceed £90,000 in the next 30 days alone. Once registered you must: charge VAT on your sales, file quarterly VAT returns under Making Tax Digital (MTD), pay net VAT to HMRC and can reclaim VAT on business purchases. Voluntary registration below the threshold is allowed and useful if most of your customers are VAT-registered businesses (so they can reclaim the VAT you charge). Deregistration: you may deregister if taxable turnover falls below £88,000 for a 12-month period.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.