VAT Threshold UK 2026: £90,000 — What You Need to Know

The UK uses a rolling 12-month period (not calendar or tax year): • At the end of each month, check: did your VAT-taxable turnover exceed £90,000 in the past 12 months? • Also check: do you expect to exceed £90,000 in the next 30 days alone?

If either answer is yes, you must register within 30 days.

Included: • Standard-rated supplies (20%) • Reduced-rated supplies (5%) • Zero-rated supplies (0% but still VAT-taxable)

Excluded: • Exempt supplies • Supplies made outside the UK • Sale of capital assets (in some cases)

Voluntary registration benefits: • Reclaim VAT on business expenses • Appear more professional to B2B clients • Access the Flat Rate Scheme for potential savings

Staying below the threshold: • Keep your VAT-taxable turnover under £90,000 • Consider timing of invoices around the end of the 12-month period • Note: artificially splitting businesses to stay below is tax avoidance and HMRC scrutinizes this