What is the VAT registration threshold?

£90,000 of VAT-taxable turnover. Registration is compulsory if your turnover exceeds £90,000 over any rolling 12-month period, or if you expect to exceed it within the next 30 days alone. The deregistration threshold is £88,000.

Does 'rolling 12 months' mean my financial year?

No — it's any consecutive 12 months, checked continuously, not your accounting year. At the end of each month you look back over the last 12; if taxable turnover has topped £90,000, you must register (within 30 days of the end of that month, effective from the first of the following month).

Should I register voluntarily below the threshold?

Often yes for B2B companies: if your customers are VAT-registered, they reclaim the VAT you charge, so it costs them nothing — and you can reclaim VAT on your own costs. For B2C businesses selling to the public, voluntary registration usually just makes you 20% more expensive, so it's rarely worthwhile.

What happens if I register late?

You still owe the VAT from the date you should have registered — even though you didn't charge it to customers — plus a potential failure-to-notify penalty. Watching the rolling 12-month figure matters, because a late registration can mean paying VAT out of your own pocket on past sales.

When to Register for VAT | £90,000 Threshold

Q: Can you check whether I need to register?

Yes — we review your turnover trend, advise on compulsory vs voluntary registration and the best scheme, and handle the registration and ongoing returns. Call 0114 327 1480.

When to register for VAT

Last reviewed: 29 April 2026Next review: 29 July 2026Reviewed by the Digital Tax Service editorial team

When to register a limited company for VAT, in navy and gold

The compulsory registration tests

Backward look: at the end of any month, if taxable turnover over the previous 12 months exceeded £90,000, register within 30 days (effective from the 1st of the next month)
Forward look: if you expect to exceed £90,000 in the next 30 days alone (e.g. a big contract), register immediately — effective from the date you knew

The rolling nature is what catches people out: it’s not your financial year, it’s a continuously moving 12-month window you should check monthly.

When voluntary registration makes sense

B2B companies: if your customers are VAT-registered businesses, the VAT you charge costs them nothing (they reclaim it), while you get to reclaim VAT on your own purchases — a net win. Registering early can also make a small company look established.

B2C businesses: selling to the public, adding 20% VAT makes you more expensive or eats your margin, with no reclaim benefit to the customer. Usually wait until you must.

Our VAT registration & returns service

Once registered, what changes

You charge VAT (usually 20%) on your sales and issue VAT invoices
You reclaim VAT on business costs
You file quarterly returns under Making Tax Digital
You choose a VAT scheme — standard, flat rate, cash accounting or annual

Is the Flat Rate Scheme right for you?

Not sure where you stand?

Getting the timing wrong can mean paying VAT you never charged. We watch the threshold, advise on voluntary registration and the best scheme, and handle registration and returns. Call 0114 327 1480.

Company VAT returns

When to register for VAT

The compulsory registration tests

When voluntary registration makes sense

Once registered, what changes

Not sure where you stand?

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