When do I need to register for VAT?

VAT thresholds in 2026/27

Before 1 April 2024, the thresholds were £85,000 to register and £83,000 to deregister.

How the 12 month test works

The test is not based on your tax year or accounting year. It is a rolling 12 months. At the end of every month, add up your taxable turnover for the last 12 months. If it is over £90,000, you must register.

Taxable turnover means everything you sell that is not VAT exempt or outside the scope of VAT. It includes:

• zero rated, reduced rated and standard rated sales
• goods you hire or lend to customers
• business goods you use for personal reasons
• goods you barter, part exchange or give as gifts

The 30 day forward test

You must also register if you expect your turnover to go over £90,000 in the next 30 days alone. For example, a single large order could do this. You must register by the end of that 30 day period. Your registration starts from the date you realised you would go over, not the date you actually do.

Worked example 1: going over the threshold

Mia runs a café. At the end of May 2026, her turnover for the previous 12 months reaches £91,000.

• She went over in May.
• She must register by 30 June 2026 (30 days after the end of May).
• Her VAT registration starts on 1 July 2026 (the first day of the second month after going over).
• From 1 July, she must charge VAT on taxable sales.

Worked example 2: staying under

Tom's turnover for the last 12 months is £86,000. He does not have to register yet, but he must check again at the end of every month. Separately, a business that is already registered can ask HMRC to cancel if its turnover falls below £88,000.

VAT rates once registered

Special cases

• Going over for a short time. You can apply for an exception if your turnover goes over the threshold only temporarily. HMRC will tell you in writing if it agrees.
• Businesses based outside the UK. You must register if you supply any goods or services to the UK, whatever your turnover.
• Registering by choice. You can register voluntarily below £90,000.
• Registering late. You must pay VAT on sales made since the date you should have registered, and you may get a penalty.
• Cancelling. If you stop trading or making taxable sales, you must cancel within 30 days.

The thresholds are the same in England, Scotland, Wales and Northern Ireland.

Related guides

• How do I become a sole trader?
• How do I register a limited company?
• What is Making Tax Digital for Income Tax?
• Can I get small business rate relief?

Where these figures come from

• Register for VAT (GOV.UK)
• VAT registration: when to register (GOV.UK)
• VAT registration: calculate your turnover (GOV.UK)
• Cancel your VAT registration (GOV.UK)
• Increasing the VAT registration threshold (HMRC)
• VAT rates (GOV.UK)