The UK VAT Registration Threshold for 2026/27 Explained

The UK VAT registration threshold for 2026/27 is £90,000 of taxable turnover in any rolling 12-month period. You must register within 30 days of the end of the month in which you exceed it. The deregistration threshold is £88,000, and you can register voluntarily below £90,000.

What is the VAT registration threshold for 2026/27?

The VAT registration threshold is the level of taxable turnover at which registering for VAT becomes compulsory. For 2026/27 it is £90,000. Taxable turnover means the total value of everything you sell that is not VAT-exempt — it is not the same as profit, and it includes standard-rated, reduced-rated and zero-rated sales.

The rolling 12-month rule

The threshold is tested on a rolling 12-month basis, not your accounting year. At the end of every month you total your taxable turnover for the previous 12 months, and the moment that figure passes £90,000 you have a duty to register. Our VAT threshold checker shows how close your rolling turnover is to the limit and models the cash-flow impact of registering.

The 30-day 'expecting to exceed' rule

There is also a forward-looking test. If you expect your taxable turnover to exceed the threshold in the next 30 days alone — for example, you win a single large contract — you must register immediately, with effect from the start of that 30-day period. Under the backward-looking test you register within 30 days of the end of the month you went over, with effect from the first of the following month.

The £88,000 deregistration threshold

If your taxable turnover falls — or you expect it to fall — below the deregistration threshold of £88,000 in the next 12 months, you can apply to cancel your VAT registration. The gap between the £90,000 registration and £88,000 deregistration thresholds prevents businesses from having to register and deregister repeatedly as turnover hovers around the limit.

Should you register for VAT voluntarily?

You can register voluntarily even if your turnover is below £90,000. This usually makes sense when most of your customers are VAT-registered businesses that can reclaim the VAT you charge, or when you have significant VAT on your costs to recover. The trade-off is quarterly VAT returns and charging VAT to any customers who cannot reclaim it. Our VAT calculator and VAT services in Glasgow can help you weigh it up.

• Reclaim input VAT on stock, equipment and overheads.

• Appear more established to larger, VAT-registered clients.

• Set against the admin of quarterly Making Tax Digital filing.

Making Tax Digital for VAT

Once registered, you must keep digital records and file returns through MTD-compatible software — mandatory for all VAT-registered businesses since April 2022. If you are approaching the threshold, it is worth getting Making Tax Digital set up before you have to register, so the switch is seamless.

Check how close you are

Not sure whether you have crossed £90,000 yet? Use the UK VAT threshold checker to compare your rolling 12-month turnover against the limit and see the cash-flow impact of registering. For advice tailored to your business, contact Countify for a free initial consultation or call 07515 646845.