UK VAT registration threshold in 2026
The UK compulsory VAT registration threshold is £90,000 of VAT taxable turnover. Businesses must monitor taxable turnover to determine whether registration becomes compulsory.
HMRC applies two important tests: a backward-looking rolling 12-month test and a forward-looking next-30-day test.
These tests are separate. A business may be required to register if either test is met under the relevant rules.
UK VAT registration and deregistration thresholds
The threshold used to determine whether a business must register for UK VAT.
The taxable turnover threshold relevant to applying for deregistration, subject to HMRC conditions.
Test 1: Rolling 12-month VAT turnover
The backward-looking test examines your VAT taxable turnover over the previous 12 months. It is not limited to the calendar year or your business's financial year.
At the end of each month, businesses should review their taxable turnover over the preceding 12 months. If it exceeds £90,000, the registration requirement may be triggered.
For example, turnover from November of one year through October of the following year may be relevant even if the business's accounting year ends in March.
Test 2: Expected taxable turnover in the next 30 days
The forward-looking test applies where a business expects its VAT taxable turnover to exceed £90,000 in the next 30 days alone.
This test can apply even if the business has not exceeded the rolling 12-month threshold.
For example, a business expecting a single substantial taxable transaction within the next 30 days may need to consider the forward-looking registration requirement.
Importantly, the forward-looking test is not simply the previous 12 months' turnover plus the next 30 days' turnover.
What counts as VAT taxable turnover?
VAT taxable turnover generally includes the value of supplies that are subject to UK VAT at the standard rate, reduced rate or zero rate.
Exempt supplies and transactions outside the scope of UK VAT require different treatment. Some supplies have special rules, and the correct turnover calculation depends on the nature of the business's activities.
VAT taxable turnover is not the same as profit. A business may have low profits but still exceed the VAT registration threshold because turnover is based on qualifying sales rather than earnings after expenses.
VAT registration threshold examples
Example 1: Turnover below the threshold
- Rolling 12-month taxable turnover: £75,000
- Expected turnover in the next 30 days: £8,000
Neither entered amount exceeds £90,000. Based only on these two figures, the normal compulsory registration threshold has not been crossed.
The business must continue monitoring turnover. Other registration rules may still be relevant.
Example 2: Rolling 12-month turnover exceeds £90,000
- Rolling 12-month taxable turnover: £94,000
- Expected turnover in the next 30 days: £6,000
The rolling 12-month amount exceeds £90,000. The business should review the compulsory VAT registration requirement and the applicable registration deadline.
Example 3: Next 30 days alone exceeds £90,000
- Rolling 12-month taxable turnover: £40,000
- Expected turnover in the next 30 days: £110,000
The forward-looking figure alone exceeds £90,000. The business should consider the next-30-day VAT registration rule even though the rolling 12-month figure is lower.
Example 4: Two figures should not be added together
- Rolling 12-month taxable turnover: £85,000
- Expected turnover in the next 30 days: £10,000
Adding the two amounts gives £95,000, but that sum is not itself either of the two statutory threshold tests.
Neither individual figure exceeds £90,000. The business should nevertheless monitor turnover as the rolling period changes.
How to use the VAT Registration Threshold Calculator
- Calculate your VAT taxable turnover over the previous rolling 12 months.
- Enter that amount in the first field.
- Estimate the taxable turnover you expect in the next 30 days alone.
- Enter that amount in the second field.
- Select Calculate and review the threshold result.
This tool is intended as a screening calculation. It does not determine the exact effective date of registration or automatically handle every exception and special circumstance.
When must a business register for VAT?
The deadline depends on which registration test is triggered. For the backward-looking test, businesses generally need to register within 30 days of the end of the month in which the threshold was exceeded.
For the forward-looking test, where a business expects turnover to exceed the threshold in the next 30 days alone, the notification and effective-date rules are different.
Businesses should check HMRC guidance promptly because late registration can create additional liabilities and penalties.
UK VAT deregistration threshold
The voluntary deregistration threshold is £88,000. VAT-registered businesses may be able to apply for deregistration if they meet the relevant conditions.
Deregistration is a separate process from initial VAT registration. The rules and turnover tests should not be treated as interchangeable.
Can a business register voluntarily?
Some businesses choose to register for VAT even when taxable turnover is below the compulsory threshold.
Voluntary registration may allow recovery of eligible input VAT, but it also introduces VAT accounting, invoicing, record-keeping and reporting responsibilities.
Whether voluntary registration is beneficial depends on the business's customers, purchases and circumstances.
Special VAT registration situations
Certain businesses and transactions can have different VAT registration rules. For example, overseas businesses making relevant UK taxable supplies may be subject to requirements that differ from the normal domestic turnover threshold.
Business transfers, connected activities, temporary turnover increases and other circumstances may also require additional analysis.
The calculator does not assess those cases.
Official UK VAT registration guidance
For registration rules and current thresholds, see the official GOV.UK VAT registration guidance .
If your turnover is close to the threshold or you are unsure how a transaction should be classified, consider professional advice.
Frequently asked questions
What is the UK VAT registration threshold in 2026?
The compulsory VAT registration threshold is £90,000 of taxable turnover, subject to the applicable registration rules.
Is the VAT threshold based on profit or turnover?
It is based on VAT taxable turnover, not business profit.
Is the £90,000 threshold based on a financial year?
No. The backward-looking test uses a rolling 12-month period rather than only a fixed accounting or tax year.
Does zero-rated turnover count towards the VAT threshold?
Zero-rated taxable supplies generally count towards VAT taxable turnover, even though the VAT rate charged is 0%.
What happens if I expect £100,000 of taxable sales in 30 days?
You may trigger the forward-looking VAT registration test, even if turnover over the previous 12 months was lower.
Can I register for VAT below £90,000?
Yes. Eligible businesses can choose voluntary VAT registration below the compulsory threshold.
Is this an official HMRC calculator?
No. CalculatorsOnline is an independent website and this tool provides an informational estimate.
Related UK VAT calculators
Important: This calculator provides an initial threshold assessment only. It does not establish an official VAT registration decision, effective registration date or eligibility for exceptions.
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