what is the vat threshold

The VAT threshold is the level of taxable turnover at which a business must register for VAT and start charging VAT on its sales.

Quick Scoop: What is the VAT threshold?

In the UK, the VAT registration threshold is currently £90,000 of taxable turnover in any rolling 12‑month period.

If your taxable turnover goes over £90,000, or you expect it to in the next 30 days, you must register for VAT with HMRC.

Put simply:

• Add up all your VAT‑taxable sales (not just profit) over the last 12 months.
• If that total is more than £90,000, you’re over the threshold and registration is compulsory.

How the VAT threshold works

• It’s a rolling 12‑month window , not a calendar or tax year.

• It covers taxable turnover (most goods and services you sell that are not exempt), not your net profit.

• There is also a deregistration threshold of £88,000; if your turnover falls below this, you can apply to deregister.

• You can register voluntarily even if you’re below £90,000, which can help if you reclaim a lot of input VAT.

Here’s that in a simple HTML table, as requested:

html

<table>
  <thead>
    <tr>
      <th>Item</th>
      <th>Amount / Rule</th>
    </tr>
  </thead>
  <tbody>
    <tr>
      <td>Current VAT registration threshold (UK)</td>
      <td>£90,000 taxable turnover in any rolling 12-month period</td>
    </tr>
    <tr>
      <td>Deregistration threshold</td>
      <td>£88,000 taxable turnover</td>
    </tr>
    <tr>
      <td>When you must register</td>
      <td>When past 12 months’ taxable turnover exceeds £90,000 or you expect to exceed £90,000 in the next 30 days</td>
    </tr>
    <tr>
      <td>Type of figure used</td>
      <td>Taxable turnover (not profit)</td>
    </tr>
    <tr>
      <td>Voluntary registration</td>
      <td>Allowed below £90,000 if beneficial</td>
    </tr>
  </tbody>
</table>

Latest news & what might change

The current official threshold of £90,000 was set from 1 April 2024, up from £85,000.

Some tax commentators expect reforms from 2026 (including possible lower thresholds), but no new figure is yet written into law, so for now businesses should plan around the £90,000 rule.

A quick example

Imagine your small online shop has these taxable sales:

• May to April total: £92,000
  Because your rolling 12‑month taxable turnover has gone over £90,000, you would need to register for VAT and start charging VAT from the point you crossed the line, not just at year end.

TL;DR: The UK VAT threshold is currently £90,000 of taxable turnover in any rolling 12 months; go over that and you must register for VAT.

Information gathered from public forums or data available on the internet and portrayed here.