UK VAT Registration Threshold

Compulsory VAT registration: when your taxable turnover passes £90,000 in any rolling 12 months. Voluntary registration available below.

Use the X-is-what-percent calculator with your turnover and the £90,000 threshold to see how close you are. The threshold rose from £85,000 to £90,000 from April 2024 (frozen since).

Worked examples

£72,000 12-month turnover = 80% of threshold — not yet required to register.

£90,000 = 100% — you must register within 30 days of the date you cross.

£135,000 = 150% — you have to register and may also benefit from voluntary VAT planning.

Sources: HMRC VAT registration · retrieved 2026-05-12.

Frequently asked questions

Is the threshold per company or per group?

Per VAT-registered entity. Connected companies may need to consider grouping rules.

Should I register voluntarily?

If you mostly serve VAT-registered businesses (B2B), they reclaim your VAT and registration lets you reclaim your input VAT — usually advantageous. If you serve consumers (B2C), it raises your prices by 20% (or you absorb it), so often worse.

Is the threshold the same as the deregistration threshold?

No. Deregistration threshold is currently £88,000.