Key facts
- The current threshold is £90,000 (from 1 April 2024).
- The deregistration threshold is £88,000.
- HMRC uses a rolling 12-month lookback, not the calendar or tax year.
- The threshold was frozen at £85,000 from 2017 to 2024.
The 2025/26 VAT Registration Threshold
From 1 April 2024, the VAT registration threshold is £90,000.[3]
If your VAT taxable turnover exceeds this amount in any rolling 12-month period, you must register for VAT.
Deregistration Threshold
The deregistration threshold is £88,000. If you’re already VAT-registered and your taxable turnover falls below this level, you can apply to deregister.[1]
Historical Thresholds
| From | Registration Threshold | Deregistration Threshold |
|---|---|---|
| 1 April 2024 | £90,000 | £88,000 |
| 1 April 2017 | £85,000 | £83,000 |
| 1 April 2016 | £83,000 | £81,000 |
| 1 April 2015 | £82,000 | £80,000 |
| 1 April 2014 | £81,000 | £79,000 |
| 1 April 2013 | £79,000 | £77,000 |
| 1 April 2012 | £77,000 | £75,000 |
The threshold was frozen at £85,000 for seven years (2017–2024), the longest freeze in VAT history.[2]
The Rolling 12-Month Test
At the end of every month, look back at your taxable turnover for the last 12 months. If it exceeds £90,000, you must register within 30 days.[1]
This is not the same as the tax year (April to April) or the calendar year. It’s a continuous rolling window.
Example: At the end of September 2025, you add up all taxable sales from October 2024 to September 2025. If the total exceeds £90,000, you must register by the end of October 2025, with registration effective from 1 November 2025.
The Forward-Look Test
You must also register if, at any point, you expect your taxable turnover to exceed £90,000 in the next 30 days alone. This covers one-off large contracts or sales.
What Happens If You Don’t Register on Time?
If you fail to register when required:
- HMRC can backdate your registration to when you should have registered
- You’ll owe VAT on all taxable sales from that date (even though you didn’t charge it)
- HMRC may charge a penalty for late registration
Frequently Asked Questions
What is the current VAT registration threshold in the UK?
The current VAT registration threshold is £90,000 (from 1 April 2024). If your VAT taxable turnover exceeds this amount in any rolling 12-month period, you must register for VAT.
How does the rolling 12-month VAT threshold test work?
At the end of every month, add up your taxable turnover for the previous 12 months. If the total exceeds £90,000, you must register within 30 days. This is a continuous rolling window, not the tax year or calendar year.
What is the VAT deregistration threshold?
The deregistration threshold is £88,000. If you are already VAT-registered and your taxable turnover in the next 12 months will fall below this amount, you can apply to deregister.
What happens if I do not register for VAT on time?
HMRC can backdate your registration to when you should have registered. You will owe VAT on all taxable sales from that date, even though you did not charge it, and HMRC may also charge a penalty.
Further Reading
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Sources
- VAT registration thresholds — GOV.UK
- VAT Notice 700/1: who should register for VAT — GOV.UK
- Spring Budget 2024 — HM Treasury