Do I need to register for VAT?
Check if you've gone over the £90,000 VAT threshold, the exact date you must register by, and when your VAT registration starts.
Check your VAT dates
The short answer
- You must register once your taxable turnover goes over £90,000 in any rolling 12 months, or will go over it in the next 30 days alone.
- Rolling 12 months: register within 30 days of the end of the month you went over.
- You can register voluntarily below £90,000, and deregister if you drop below £88,000.
General information based on GOV.UK guidance checked on 11 October 2026. Not tax advice. Some businesses (for example those based outside the UK) have different rules. Check GOV.UK or an accountant if you're unsure.
The two VAT tests
1. The rolling 12-month test
At the end of every month, add up your taxable turnover for the previous 12 months. If it's over £90,000, you must register within 30 days of the end of that month. Your VAT registration starts on the first day of the second month after you went over.
Example: you go over the threshold on 15 July. You must register by 30 August, and your registration starts on 1 September.
2. The next 30 days test
If you expect your turnover in the next 30 days alone to go over £90,000, you must register by the end of that 30-day period. Here, your registration starts from the date you realised, not the date you actually went over.
Example: you sign a £100,000 contract on 1 May. You must register by 30 May, and your registration starts on 1 May.
What counts as taxable turnover
Counts: everything you sell that isn't VAT exempt, including zero-rated and reduced-rate sales, goods you hire or loan out, and business goods used personally.
Doesn't count: VAT-exempt sales (such as most insurance, finance and some education and health services) and sales that are outside the scope of VAT.
It's your turnover (sales), not your profit. A sole trader earning £95,000 with £40,000 of costs is still over the threshold.
Frequently asked questions
What is the VAT threshold for 2026/27?
The VAT registration threshold is £90,000 of taxable turnover in a rolling 12-month period. The deregistration threshold is £88,000.
Is the VAT threshold based on the tax year?
No. It's any rolling 12-month period, checked at the end of each month. That catches a lot of people out, because their turnover can pass £90,000 part-way through a tax year.
Is it turnover or profit?
Turnover. It's the total value of your taxable sales, before any expenses are taken off.
What happens if I register late?
You have to pay HMRC the VAT you should have charged on sales from the date you should have been registered, even if you didn't charge your customers VAT. You may also get a penalty. If you've gone over, register as soon as you can.
Can I register even though I'm under £90,000?
Yes, voluntary registration is allowed. It can make sense if most of your customers are VAT-registered businesses, as you can then reclaim VAT on your costs. You'll need to charge VAT and file returns using Making Tax Digital software.
What if I only go over the threshold once?
If it's a one-off and you expect your turnover to drop back below the deregistration threshold, you can ask HMRC for an exception. HMRC decides, and will register you if it isn't granted.
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