The UK VAT registration threshold is £90,000 of taxable turnover, checked against the current GOV.UK guidance on 28 September 2026. This is not a profit threshold, and it is not simply an annual check at tax-return time. Two timing tests can trigger registration, so keep the relevant sales information current.
The useful bits
- Check taxable turnover, not profit or the bank balance.
- The usual tests look back over 12 months and ahead over the next 30 days.
- Check the official deadlines promptly if either test applies.
Understand the two main registration tests
For a UK-established business, the usual compulsory-registration tests are taxable turnover exceeding £90,000 over the last 12 months, or an expectation that it will exceed £90,000 in the next 30 days alone. GOV.UK explains the different deadlines and effective registration dates for each.
The backward-looking test uses a rolling period. Starting a new tax year does not reset it. Keep that distinction visible in your monthly review so an annual accounts total does not become the only number you watch.
Check which sales belong in the total
Taxable turnover is not the same as every deposit arriving in your bank account. GOV.UK includes zero-rated sales in taxable turnover and distinguishes exempt and out-of-scope supplies. Loans, transfers and the money left after expenses are different concepts.
If you have mixed types of work, overseas customers or an unusual contract, ask an accountant which sales to include before relying on a spreadsheet total. A confident-looking number is not useful if the underlying categories are wrong.
Set up a rolling monthly check
Create a row for each month’s relevant sales, keep the evidence behind the amounts and add the latest 12 months. When a new month ends, remove the oldest month from that rolling total. Note the date you reviewed it and any unresolved categorisation questions.
Illustrative rolling-total calculation
Suppose the previous 12-month taxable-turnover total was £84,000. The oldest month contributed £4,000 and the new month contributes £11,000. The updated total is £84,000 − £4,000 + £11,000 = £91,000. This hypothetical business should act on HMRC’s registration guidance promptly; the example does not determine an individual business’s registration date.
Prepare the information before a large job starts
Bring your recent sales records, upcoming contracts and current prices to your accountant. Discuss the effect on customer-facing prices, quotes already accepted and the information your invoices will need. Do not assume you can add VAT to an agreed price without checking the agreement.
Review your administrative setup too. Who will maintain the records, check invoice treatment and handle returns? Write those responsibilities down so registering does not leave a gap between taking payment and maintaining the accounts.
- A current rolling sales summary with supporting invoices.
- Expected work and contracts for the next 30 days.
- Questions about any exempt, zero-rated or overseas sales.
- Current customer prices and accepted quotes.
- The person responsible for records and returns.
Use official guidance for the decision
Voluntary registration below the threshold is possible. Whether it makes sense depends on your business and customers; this guide does not recommend it automatically. GOV.UK also covers special cases, including businesses based outside the UK.
Use this page as a checklist for the conversation, then confirm the current rules and deadlines with HMRC or your accountant. Tender’s accounting connections support a records workflow; they do not decide your VAT status or submit your tax returns.
Sources and further reading
Sources checked 28 September 2026. Follow the official guidance for the current rules and how they apply to your business.
