Free tool

Should I Register for VAT?

Check if your turnover means you need to register for VAT. The current UK VAT registration threshold is £90,000 (2026/27 tax year).

What is your taxable turnover for the last 12 months?

Do you expect to exceed £90,000 in the next 30 days alone?

You must register for VAT

You've exceeded the £90,000 threshold. You must register with HMRC within 30 days of the end of the month you went over.

Start charging VAT from the date HMRC tells you to (your "effective date of registration"). Late registration can result in penalties.

You must register for VAT

Even though your current turnover is below the threshold, you expect to exceed £90,000 in the next 30 days. This means you must register before the end of that 30-day period.

You must start charging VAT from the date you expect to go over the threshold, not from the date you actually go over.

You're approaching the threshold

No VAT registration required

Understanding VAT registration

What counts as taxable turnover?

Taxable turnover is the total value of everything you sell that is not VAT-exempt. This includes goods and services in the UK and certain goods and services to EU countries. It does not include VAT-exempt sales (such as insurance, education, or health services) or sales made outside the UK.

What is the VAT threshold for 2026/27?

The current VAT registration threshold is £90,000. If your taxable turnover exceeds this amount over any rolling 12-month period, you must register. The deregistration threshold is £88,000.

Voluntary registration: pros and cons

You can register for VAT even if your turnover is below the threshold.

Pro: Reclaim VAT on business purchases (tools, materials, vehicles)
Pro: Appear more established to larger clients and contractors
Con: You must charge VAT to customers, which can increase your prices
Con: Extra admin: quarterly VAT returns to HMRC

What happens when you go over?

You must notify HMRC within 30 days of the end of the month your taxable turnover exceeded £90,000. HMRC will then register you and give you an effective date. From that date, you must charge VAT on your sales and submit quarterly returns.

Disclaimer: This tool provides general information only and does not constitute tax advice. VAT rules can be complex and depend on your specific circumstances. Always consult HMRC or a qualified accountant for guidance on your situation.