What is the VAT registration threshold in the UK for 2026/27?

Full answer

The VAT registration threshold is the level of taxable turnover above which a business must register for VAT. Key figures for 2026/27: - Compulsory registration threshold: £90,000 (taxable turnover in any rolling 12-month period) - Deregistration threshold: £88,000 (you can apply to deregister if you expect turnover to fall below this) - Both figures have been frozen at these levels until at least 2026. How the threshold works: - It applies to any rolling 12-month period, not just the calendar year or tax year. - At the end of any month, look back at the previous 12 months. If cumulative taxable turnover exceeds £90,000, you have exceeded the threshold. - You must notify HMRC within 30 days and register for VAT. Registration takes effect from the first day of the month following the 30-day notification period. What counts as taxable turnover: - All sales of standard-rated (20%), reduced-rated (5%), and zero-rated (0%) goods and services. - Exempt supplies (insurance, some financial services, health) do NOT count toward the threshold. Voluntary registration: - You can register voluntarily even if below the threshold -- useful if your customers are VAT-registered businesses (they can reclaim the VAT you charge) or if you pay significant input VAT. Penalties for late registration: - HMRC can charge a penalty of 5% to 15% of the VAT due since you should have been registered, depending on how late the registration is. Flat Rate Scheme: - Available to businesses with expected turnover below £150,000 excluding VAT.

Related guides

• Uk Vat Registration Guide
• Uk Vat Flat Rate Scheme

More answers

• How does the VAT Flat Rate Scheme benefit small businesses in the UK?
• Can you reclaim VAT on a company car in the UK?