FREE VAT TOOL FOR UK BUSINESSES
Use this free VAT registration threshold checker to see whether your taxable turnover may mean you need to register for VAT.
FREE INSTANT CHECK
Do you need to register for VAT?
Your figures stay in your browser and are not sent to Real Key Accountancy.
Use a rolling 12-month total, not your accounting year. Include standard, reduced and zero-rated sales; exclude exempt and out-of-scope sales.
What is the VAT registration threshold?
The current UK VAT registration threshold is more than £90,000 of VAT-taxable turnover. A UK-established business generally must register if its rolling taxable turnover for the previous 12 months goes over this amount, or if it expects taxable turnover to exceed £90,000 in the next 30 days alone.
The threshold is based on turnover, not profit. It is also a rolling 12-month test rather than a tax year or accounting year test, so it should be reviewed at the end of every month.
What counts as VAT-taxable turnover?
- Standard-rated sales
- Reduced-rated sales
- Zero-rated sales
- Certain reverse-charge transactions
- Business goods used personally, bartered or given away in some circumstances
VAT-exempt and out-of-scope sales are generally excluded. Correct classification matters because zero-rated sales count even though the VAT rate is 0%.
What happens when you exceed £90,000?
If your previous 12 months’ taxable turnover goes over £90,000, you normally have 30 days from the end of the month in which you exceeded it to apply. Your effective registration date is usually the first day of the second month after you went over the threshold.
If you expect taxable turnover to exceed £90,000 in the next 30 days alone, different timing applies: you normally register by the end of that period and your effective date is when you first realised the threshold would be exceeded.
Can you register voluntarily?
A business below the threshold may choose voluntary VAT registration. This can allow VAT recovery on eligible costs, but it also creates pricing, invoicing, record-keeping and return obligations. Whether it helps depends on your customer base, margins and purchases.
How Real Key Accountancy can help
- Review your rolling turnover records
- Set up VAT-ready bookkeeping
- Support VAT registration administration
- Prepare and submit VAT returns where engagement and authorisation allow
- Keep digital VAT records organised
Explore our VAT return services in Wolverhampton, use our MTD Start Date Checker, or contact Real Key Accountancy for practical support.
Official VAT guidance
The rules and threshold were checked against HMRC guidance in August 2026. Read the current HMRC VAT registration guidance and VAT threshold guidance before taking action.
Frequently asked questions
Is the £90,000 threshold based on profit?
No. It is based on VAT-taxable turnover before business expenses.
Does zero-rated income count?
Yes, zero-rated sales normally count towards taxable turnover even though the VAT rate is 0%.
What if I exceed the threshold temporarily?
You may be able to apply to HMRC for an exception if your turnover went over temporarily and you can show future taxable supplies will stay below the deregistration threshold. Approval is not automatic.