VAT registration threshold
When you must register for VAT, the rolling 12-month test, and when voluntary registration makes sense.
In one sentence
You must register for VAT once your taxable turnover exceeds £90,000 in any rolling 12-month period, or if you expect to exceed it in the next 30 days.
Quick answer
- Mandatory threshold: £90,000 of taxable turnover (rolling 12-month basis, from 1 April 2024)
- Forward-look test: register if you expect to exceed £90,000 in the next 30 days
- Voluntary registration: possible at any turnover if you make taxable supplies
- Deregistration threshold: £88,000 (you can deregister if turnover falls below this)
The current threshold
You must register for VAT once your taxable turnover exceeds £90,000 in any rolling 12-month period. This threshold rose from £85,000 to £90,000 on 1 April 2024.
You must also register if you reasonably expect your taxable turnover to exceed £90,000 in the next 30 days alone.
The rolling 12-month test
The test is not based on your accounting year. At the end of every month, look back at the last 12 months. If your taxable turnover in those 12 months is over £90,000, you must register within 30 days.
Your effective registration date is the first day of the second month after you crossed the threshold. So if you crossed in March, your effective date is 1 May.
What counts as taxable turnover
- Sales of standard-rated, reduced-rated, and zero-rated goods and services
- Sales of business assets
- Excludes: exempt supplies (like financial services or insurance)
- Excludes: sales outside the scope of UK VAT
The 30-day forward look
If you sign a single contract or get a one-off order that takes you over £90,000 in the next 30 days alone, you must register straight away. The effective registration date is the date you became aware you would exceed the threshold.
Voluntary registration
You can register before reaching the threshold. This is sometimes useful — see the dedicated article on voluntary registration for the trade-offs.
Deregistration
If your taxable turnover drops below £88,000, you can apply to deregister. You do not have to — many businesses stay registered voluntarily.
What to do next
- Track turnover monthly so you spot the threshold approaching
- If you're close, set up MTD-compatible bookkeeping software in advance
- Register on time — late registration triggers automatic penalties
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