When Do You Need to Register for VAT? (2026 UK Threshold)

VAT catches a lot of growing businesses by surprise. Register too late and you can face penalties and a backdated bill. Here's when you need to register — and when you might choose to.

The VAT registration threshold

You must register for VAT once your taxable turnover exceeds the current threshold of £90,000 in any rolling 12-month period — or if you expect to cross it within the next 30 days. (Thresholds can change, so always check the current figure.)

It's a rolling 12 months — not your tax year

This is where businesses slip up. You have to check your turnover on a rolling basis, not just at year-end. If the last 12 months tips over £90,000 at any point, the clock starts.

What about registering voluntarily?

You can register before you hit the threshold, and sometimes it makes sense — for example if you sell to other VAT-registered businesses and want to reclaim VAT on your purchases. For others it just adds admin. It's worth a quick conversation before deciding.

What changes once you're registered

• You charge VAT (usually 20%) on your sales.
• You can reclaim VAT on eligible business purchases.
• You file VAT returns (normally quarterly) under Making Tax Digital.
• You keep digital VAT records.

Not sure whether you need to register — or whether you should voluntarily? Get in touch and we'll check where you stand and handle the registration for you.