Answers · UK 2025/26

When do I have to register for VAT as a UK business?

You must register for VAT once your taxable turnover exceeds £90,000 in any rolling 12-month period (not the tax or calendar year), or if you expect to exceed it in the next 30 days alone. You can also register voluntarily below this threshold to reclaim VAT on purchases.

Last updated: 1 July 2026Last reviewed: 1 July 2026How we verify

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VAT registration in the UK is triggered by taxable turnover, not profit, and the £90,000 threshold is assessed on a rolling 12-month basis, meaning you must check your turnover for any trailing 12 months, not just your accounting year. **The two triggers for compulsory registration** First, if your taxable turnover for the previous 12 months (looking back at any point) exceeds £90,000, you must register within 30 days of the end of the month in which you went over. Second, if you expect your turnover to exceed £90,000 in the next 30 days alone (for example, a single large contract), you must register immediately, by the end of that 30-day period. **Worked example** A freelance designer's turnover for the 12 months to the end of October reaches £91,500, having stayed below £90,000 the month before. They must register by 30 November (30 days after the end of October) and their VAT registration typically takes effect from 1 December. **Voluntary registration below the threshold** Businesses with turnover below £90,000 can choose to register voluntarily, which allows reclaiming VAT on business purchases and can make the business appear more established to VAT-registered clients, but also means charging VAT on sales, adding 20% to prices for consumers who cannot reclaim it themselves. **Deregistration** If turnover falls, or is expected to fall, below the £88,000 deregistration threshold, a business can apply to deregister, though this is optional, not automatic. **Practical tip** Track your rolling 12-month taxable turnover monthly, not just at your year end, since the compulsory registration test is a continuously moving window and it is easy to breach it mid-year without noticing.