Answers · UK 2025/26

What is the VAT registration threshold for 2026/27?

The VAT registration threshold for 2026/27 is £90,000 of taxable turnover in any rolling 12-month period. You must register within 30 days of exceeding it, or if you expect to exceed it in the next 30 days alone. The deregistration threshold is £88,000.

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

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You must register for VAT if your VAT-taxable turnover exceeds £90,000 over any rolling 12-month period — not just your accounting or tax year. This is a backward-looking test checked month by month: at the end of each month, total the previous 12 months' taxable turnover, and if it has passed £90,000 you must register within 30 days. There is also a forward-looking test: if you expect your taxable turnover to exceed £90,000 in the next 30 days alone (for example after winning a large contract), you must register immediately. Taxable turnover means sales of goods and services that are not VAT-exempt — it includes standard-rated, reduced-rated and zero-rated sales, but excludes exempt supplies and the sale of capital assets. Once registered, you charge VAT (standard rate 20%) on your sales, reclaim VAT on eligible purchases, and submit returns under Making Tax Digital. The deregistration threshold is £88,000 — you can deregister if turnover falls below this. Worked example: a sole trader's rolling 12-month turnover reaches £91,000 at the end of June. They must register by 30 days after the end of that month and start charging VAT from the first day of the second month after exceeding the threshold. Voluntary registration below £90,000 can make sense if you sell mainly to VAT-registered businesses or have significant reclaimable input VAT. Use the VAT calculator to work out VAT on your prices and the Corporation Tax calculator for limited-company planning.