Answers · UK 2025/26

When do I need to register for VAT in 2026?

You must register for VAT once your taxable turnover exceeds £90,000 in any rolling 12-month period, or if you expect to exceed it within the next 30 days. The 2026/27 threshold is £90,000, and deregistration is possible below £88,000.

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

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VAT registration becomes compulsory when your VAT-taxable turnover (the total of everything you sell that is not exempt) goes over the £90,000 threshold. There are two tests for 2026/27. The backward look: at the end of any month, if your turnover over the previous rolling 12 months exceeded £90,000, you must register within 30 days and your registration starts the first day of the second month after you went over. The forward look: if you expect to exceed £90,000 in the next 30 days alone (for example, a large contract), you must register immediately. Worked example: a sole trader’s rolling 12-month turnover hits £92,000 at the end of June 2026. They must notify HMRC by 30 July and will be registered from 1 August. Once registered, you charge VAT (usually 20% standard rate) on your sales, can reclaim VAT on business purchases, and must file VAT returns, normally quarterly. You can also register voluntarily below the threshold, which makes sense if you sell mainly to VAT-registered businesses or want to reclaim input VAT. If your turnover falls below the £88,000 deregistration threshold you can apply to cancel. The threshold and rules are UK-wide and apply in Scotland identically. Many small businesses use the Flat Rate Scheme to simplify accounting. Use the VAT calculator to work out what to charge and reclaim.