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    VAT · 2025/26

# UK VAT threshold 2026: when do you have to register?

The UK VAT registration threshold is £90,000 of taxable turnover, measured on a rolling 12-month basis. It rose from £85,000 in April 2024 and is frozen at £90,000 into 2026. You must register once your taxable turnover crosses £90,000 in any 12-month period, or if you expect to cross it within the next 30 days.

      CB

        [Charlie Bailey](https://www.linkedin.com/in/charliebaileyy/) · Founder, Take Home · 6 years in UK accountancy
        Published 2026-05-30 · Updated 2026-05-30 · 4-min read

    On this page
- [Check where you stand](#vat-check)

      - [The current threshold](#threshold)

      - [The rolling 12-month test](#rolling)

      - [The 30-day forward look](#forward)

      - [What counts as taxable turnover](#counts)

      - [Registering voluntarily](#voluntary)

      - [Deregistration at £88,000](#dereg)

      - [FAQ](#faq)

##

Key takeaways
- The VAT registration threshold is £90,000 of taxable turnover, frozen into 2026.

- It is a rolling 12-month figure, not your accounting year or the tax year.

- A separate forward-look test catches you if you expect to pass £90,000 in the next 30 days alone.

- Zero-rated sales count towards the threshold. VAT-exempt and out-of-scope income do not.

- You can deregister if turnover is expected to stay below £88,000 .

## Check where you stand

  Quick check: do you need to register for VAT?

      Your taxable turnover over the last rolling 12 months (£)

      Taxable sales you expect in the next 30 days alone (£)

    Threshold £90,000, deregistration £88,000 (2025/26, frozen into 2026). Taxable turnover excludes VAT-exempt and out-of-scope income but includes zero-rated sales. Informational only.

## The current threshold

The VAT registration threshold is **£90,000**. It rose from £85,000 on 1 April 2024, the first increase in seven years, and is frozen at £90,000 through 2025/26 and into 2026.

The deregistration threshold is **£88,000**. If your taxable turnover falls below this, you can apply to come off the VAT register.

## The rolling 12-month test

The threshold is not your accounting year or the tax year. It is a **rolling 12 months**. At the end of every month you look back at the previous 12 months' taxable turnover. The moment that figure exceeds £90,000, you have crossed the threshold.

If you cross it, you must register within **30 days** of the end of the month in which you went over, and your registration takes effect from the first day of the second month after you exceeded it.

Worked example: your rolling 12-month turnover hits £91,000 at the end of August. You must register by 30 September, and you are VAT-registered from 1 October.

## The 30-day forward look

There is a second trigger that catches people out. If at any point you *expect* your taxable turnover to exceed £90,000 in the **next 30 days alone**, for example because you win a single large contract, you must register immediately, with effect from the date you formed that expectation.

This forward-look test stands on its own. You can be required to register even if your rolling 12-month total is still well under £90,000.

## What counts as taxable turnover

Taxable turnover is the total value of everything you sell that is not VAT-exempt or outside the scope of UK VAT. It includes:

- Standard-rated, reduced-rated and zero-rated sales (zero-rated still counts towards the threshold)

- Goods you hire or loan out

- Business goods used for personal reasons

- Services received from abroad that you have to "reverse charge"

It excludes VAT-exempt supplies (such as most insurance, finance, and certain education and health services) and genuinely out-of-scope income.

## Registering voluntarily below the threshold

You can register before you hit £90,000. Whether that helps depends on who your customers are:

- If your customers are VAT-registered businesses , voluntary registration lets you reclaim VAT on your costs while your customers simply reclaim the VAT you charge them, often a net win.

- If your customers are consumers or non-VAT-registered , adding 20% to your prices (or absorbing it) usually hurts, because they cannot reclaim it.

Voluntary registration also lets you reclaim VAT on certain pre-registration purchases, up to four years back for goods you still hold, and six months for services.

## Deregistration at £88,000

If your taxable turnover drops and you expect it to stay below **£88,000** over the next 12 months, you can apply to deregister. You would then stop charging VAT, but you also stop reclaiming it, and you may owe VAT on assets you still hold above a small threshold.

Sitting just under £90,000 to avoid registering is a real strategic decision for many sole traders and small companies. Modelling the take-home impact of crossing the threshold, before you take that next contract, is exactly what Take Home is built to show you.

    Nothing missed

## Never miss a threshold or a deadline.

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    FAQ

## Frequently asked

      What is the UK VAT threshold for 2026?

The VAT registration threshold is £90,000 of taxable turnover, measured on a rolling 12-month basis. It rose from £85,000 in April 2024 and is frozen at £90,000 into 2026. The deregistration threshold is £88,000.

      Is the VAT threshold based on the tax year?

No. It is a rolling 12-month figure. At the end of each month you look back at the previous 12 months' taxable turnover; if it exceeds £90,000 you must register within 30 days of the end of that month.

      Do zero-rated sales count towards the VAT threshold?

Yes. Zero-rated sales are taxable supplies and count towards the £90,000 threshold. Only VAT-exempt and genuinely out-of-scope income is excluded.

      Can I register for VAT voluntarily before I reach £90,000?

Yes. Voluntary registration often makes sense if your customers are VAT-registered businesses, because you can reclaim VAT on your costs while they reclaim the VAT you charge. It usually hurts if your customers are consumers who cannot reclaim it.

      When can I deregister for VAT?

You can apply to deregister if your taxable turnover is expected to stay below £88,000 over the next 12 months. You then stop charging and reclaiming VAT, and may owe VAT on assets you still hold above a small limit.