VAT Registration Threshold Checker UK 2026 — Do You Need to Register?
You must register for VAT if your taxable turnover exceeds £90,000 in any rolling 12-month period (from April 2024). Use this tool to check whether you need to register, estimate your VAT liability, and compare standard vs flat rate scheme options.
VAT registration threshold 2026/27: £90,000 taxable turnover in any rolling 12-month period. Standard rate: 20%. Flat Rate Scheme available to businesses with turnover under £150,000. Always confirm with an accountant before registering.
VAT Thresholds 2026/27
| Threshold | Amount |
|---|---|
| Mandatory registration threshold | £90,000 (rolling 12 months) |
| Deregistration threshold | £88,000 |
| Flat Rate Scheme entry threshold | £150,000 expected taxable turnover |
| Annual Accounting Scheme | Up to £1.35 million VAT-exclusive turnover |
| Cash Accounting Scheme | Up to £1.35 million VAT-exclusive turnover |
Standard Rate, Reduced Rate & Zero Rate
Not all sales attract 20% VAT. The standard rate of 20% applies to most goods and services. The reduced rate of 5% applies to items like domestic energy and children's car seats. Zero-rated goods include most food, children's clothing, books, and new residential construction. Zero-rated sales count towards your registration threshold but you charge 0% VAT on them.
Should You Register Voluntarily?
If your customers are VAT-registered businesses (B2B), voluntary registration is often beneficial — you can reclaim VAT on your purchases, and your customers can reclaim the VAT you charge them, so it is cost-neutral for them. If your customers are mainly consumers (B2C) who cannot reclaim VAT, registering adds 20% to your prices, which can make you less competitive unless you absorb the cost.
How to Register for VAT
VAT registration is done online through your HMRC business tax account, and you'll need your business's Unique Taxpayer Reference, turnover figures, and bank details to complete the application. Most straightforward applications are approved within about 30 working days, though HMRC can take longer if it needs to verify details or if your application is more complex — for example, if you're registering a group of companies together or applying for an exception to compulsory registration. Once approved, you receive a VAT registration certificate confirming your VAT number, your effective date of registration, and when your first VAT return is due. From that effective date onwards, you must charge VAT on all applicable sales, even if your certificate hasn't arrived yet — this is known as trading in your "registration limbo" period, and you can either raise VAT-inclusive invoices immediately or reissue invoices once your number arrives.
What Happens to Your Prices and Invoices After Registering
Once registered, every VAT invoice you issue must show your VAT registration number, the VAT rate applied, and the VAT amount separately from the net price. Many small businesses choose to absorb the VAT into their existing prices (particularly when selling to consumers who can't reclaim it) rather than adding 20% on top, to avoid a sudden price jump that could put off customers — though this obviously reduces your effective margin, since 20% of your existing price now needs to be paid to HMRC rather than kept as revenue. You'll also need VAT-compliant accounting software or spreadsheets under Making Tax Digital rules, which require most VAT-registered businesses to keep digital records and submit returns using compatible software rather than manual entry on the HMRC portal.