Glossary · UK
What is VAT Registration Threshold?
The annual turnover above which a UK business must register for VAT (£90,000 in 2025/26).
Full Definition
You must register for VAT if your taxable turnover exceeds £90,000 in any rolling 12-month period (raised from £85,000 in April 2024). You can also register voluntarily at any turnover. Once registered, you must charge 20% VAT on most sales (5% on reduced-rated items, 0% on zero-rated items, exempt for some services), submit quarterly VAT returns, and pay HMRC the difference between VAT charged and VAT paid on purchases. Several schemes simplify VAT for smaller businesses: Flat Rate Scheme (≤£150k turnover), Cash Accounting, Annual Accounting.
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Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.