UK VAT Registration Threshold Checker
A 30-second check to see whether your UK business is over, under or near the VAT registration threshold (£90,000 from 1 April 2024).
You must register for UK VAT if either: (1) your rolling 12-month taxable turnover exceeds £90,000, or (2) you expect to exceed £90,000 in the next 30 days alone. Voluntary registration is also possible below the threshold.
You are well below the threshold (£18,000 headroom). No action required.
What "taxable turnover" actually means
Taxable turnover is the total of your VAT-taxable sales — including standard, reduced and zero-rated supplies — over a rolling 12-month period. It is not your accounting year. Exempt supplies (e.g. most insurance, postal services, certain education) do not count. Sales outside the scope of UK VAT do not count.
The two tests, in plain English
- Backward look: At the end of every month, add up the last 12 months' taxable turnover. If it has crossed £90,000, register within 30 days of the end of that month. Your effective date of registration is the first day of the second month after you went over.
- Forward look: If you sign a contract or expect a one-off spike that will take the next 30 days alone over £90,000, you must register immediately. The effective date is the date you realised you'd cross it.
Deregistration
You can deregister voluntarily once your rolling 12-month turnover drops below £88,000 (the deregistration threshold). This is useful for businesses that have wound down or pivoted.
Voluntary registration — when it makes sense
- Most of your sales are zero-rated (e.g. children's clothing, books, basic food) and you have material VAT to reclaim on inputs.
- Your customers are VAT-registered businesses who can reclaim the VAT you charge.
- You want to look bigger — VAT registration is a small credibility signal for B2B buyers.
Voluntary registration is usually a bad idea if most of your customers are consumers who cannot reclaim — you'll either raise prices by 20% or eat the VAT yourself.
HMRC charges a penalty for failing to register on time, plus interest. They can also assess VAT on sales you should have charged it on — so a late registration can leave you owing 20% of past sales out of pocket.
Frequently asked questions
Related guides
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Information on this page is general guidance for UK small businesses and is not financial, tax or legal advice. Tax rules, allowances and product terms change. Always check current information with HMRC, Companies House or a qualified professional before making decisions.