UK VAT Registration Threshold 2026: Quick Answer
The UK VAT registration threshold in 2026 is £90,000 of VAT taxable turnover in any rolling 12-month period. The deregistration threshold is £88,000. Both have been unchanged since 1 April 2024 and apply across England, Scotland, Wales and Northern Ireland.
Table of Contents
- What Is the VAT Threshold in 2026?
- How the Threshold Is Measured
- What Counts as Taxable Turnover?
- Zero-Rated vs Exempt Supplies
- Future Turnover Test (30-Day Rule)
- When You Must Register and By When
- What If You Go Over Temporarily?
- Voluntary VAT Registration
- Deregistration Threshold (£88,000)
- Overseas Businesses
- Reverse Charge Note
- How the Threshold Changed
- Will the Threshold Change Again?
- Monitoring Checklist
- Frequently Asked Questions
- Key Takeaways
What Is the VAT Threshold in 2026?
The VAT threshold is the taxable turnover limit at which a UK business must register for VAT. In 2026 it is:
- £90,000 taxable turnover
- Measured over a rolling 12-month period, checked at the end of every month
- The same across England, Scotland, Wales and Northern Ireland
If your taxable turnover goes above this limit, VAT registration becomes compulsory. Official guidance: GOV.UK VAT registration thresholds.
How the Threshold Is Measured
The threshold is not based on the tax year or the calendar year. At the end of every month, add up your taxable turnover for the previous 12 months. If the total is above £90,000, you must register.
What Counts as Taxable Turnover?
| Counts toward the threshold | Does not count |
|---|---|
| Standard-rated sales (20%) | VAT-exempt supplies |
| Reduced-rated sales (5%) | Income outside the scope of VAT |
| Zero-rated sales (0%) | Sales of capital assets (in most cases) |
See UK VAT rates explained for what is standard, reduced and zero rated, and how VAT works in the UK.
Zero-Rated vs Exempt Supplies
| Supply type | Counts toward threshold? | Input VAT recoverable? |
|---|---|---|
| Zero-rated | Yes | Yes |
| Exempt | No | No |
For example, exported goods are zero-rated and count. Certain financial services are exempt and do not count. Mixing these up is one of the most common HMRC compliance errors.
Future Turnover Test (30-Day Rule)
You must also register if you expect your taxable turnover to exceed £90,000 in the next 30 days alone, for example because of a large one-off contract or a seasonal spike. You must notify HMRC by the end of that 30-day period, and your registration takes effect from the date you realised.
When You Must Register and By When
- Check turnover at each month end.
- If the 12-month total passes £90,000, notify HMRC within 30 days of the end of that month.
- Registration takes effect from the first day of the second month after the month in which you went over.
- Late registration can mean backdated VAT, penalties and interest.
Example for 2026: if your taxable turnover for November 2025 to October 2026 is £91,000, you must notify HMRC within 30 days of 31 October 2026 (by 30 November 2026), and registration starts on 1 December 2026. Always confirm dates on GOV.UK: register for VAT.
What If You Go Over Temporarily?
You can ask HMRC for an exception from registration if the excess is due to a one-off event and you can show your turnover will stay below the £88,000 deregistration threshold over the next 12 months. HMRC reviews your evidence before deciding.
Voluntary VAT Registration
You can register voluntarily even if your turnover is below £90,000. Businesses do this to reclaim VAT on expenses, to look more credible to VAT-registered clients and to prepare for growth. The cost is charging VAT on sales, filing VAT returns and keeping digital records under Making Tax Digital. See UK VAT for small businesses and VAT accounting schemes.
Deregistration Threshold (£88,000)
You may apply to deregister if your taxable turnover over the next 12 months is expected to stay below £88,000. The lower limit stops businesses registering and deregistering repeatedly because of short-term changes.
Overseas Businesses
A business with no UK establishment that makes taxable supplies in the UK generally has no threshold and must register from its first taxable sale. Check the current HMRC guidance for your situation.
Reverse Charge Note
Sales made under the domestic reverse charge (for example in construction) still count toward taxable turnover. Services you receive under reverse charge do not increase your turnover.
How the Threshold Changed
| Period | Registration threshold | Deregistration threshold |
|---|---|---|
| Before 1 April 2024 | £85,000 | £83,000 |
| From 1 April 2024 (still current) | £90,000 | £88,000 |
Will the Threshold Change Again?
No change was announced in the Autumn Budget 2025. The thresholds can be reviewed at any Budget, and we update this page when HMRC confirms a change. Check the GOV.UK page for the current figures.
Monitoring Checklist
- Review turnover every month
- Separate exempt from taxable income
- Watch for large contracts
- Assess cross-border services
- Keep your records
Tools: UK VAT calculator, UK VAT table and the free VAT invoice generator.
Frequently Asked Questions
What is the UK VAT threshold in 2026?
£90,000 of taxable turnover in any rolling 12-month period.
Has the VAT threshold changed for 2026?
No. It has been £90,000 since 1 April 2024.
Is the threshold based on profit?
No. It is based on taxable turnover, not profit.
Is it based on a calendar or tax year?
No. It is a rolling 12-month period checked every month.
Do zero-rated sales count?
Yes. Zero-rated sales count toward the threshold.
Do exempt sales count?
No. VAT-exempt supplies do not count.
When must I notify HMRC?
Within 30 days of the end of the month in which you went over £90,000, or by the end of the 30-day period under the future turnover test.
What if I only exceed it temporarily?
You can ask HMRC for an exception if turnover will stay below £88,000 over the next 12 months.
Can I register below £90,000?
Yes. Voluntary registration is allowed.
What is the deregistration threshold?
£88,000.
Key Takeaways
- The UK VAT registration threshold in 2026 is £90,000
- The deregistration threshold is £88,000
- It is measured over a rolling 12-month period
- You can be forced to register by past or expected future turnover
- Zero-rated sales count; exempt sales do not
- You may apply for an exception if you exceed the limit temporarily
- Voluntary registration is allowed below the threshold
