Current VAT Threshold
£90,000
No changes announced since 1 April 2024
No. As of June 2026, the UK VAT registration threshold has not changed since it increased to £90,000 on 1 April 2024. There have been no further Government announcements confirming another increase.
Last updated: June 2026
The current VAT registration threshold remains £90,000, with the VAT deregistration threshold remaining £88,000. These thresholds came into effect on 1 April 2024, and no further changes have been announced by the Government.
| Item | Current Position |
|---|---|
| VAT Registration Threshold | £90,000 |
| VAT Deregistration Threshold | £88,000 |
| Effective From | 1 April 2024 |
| Future Changes Announced | No |
| Last Updated | June 2026 |
For the latest official information, see:
The House of Commons Library also confirms that there have been no further announced changes since the threshold increased to £90,000.
Current VAT registration threshold is £90,000
Current VAT deregistration threshold is £88,000
The VAT threshold is based on a rolling 12-month taxable turnover
Businesses can choose to register voluntarily below the threshold
Registering late can result in penalties and interest
Monitoring your turnover monthly can help you avoid unexpected VAT liabilities
Current VAT Registration Threshold
£90,000
of taxable turnover over any rolling 12-month period
This applies to:
Sole Traders
Limited Companies
Partnerships
Contractors
Freelancers
Online Sellers
E-commerce
The current VAT deregistration threshold is £88,000, meaning eligible businesses whose turnover falls below this amount may be able to deregister.
At the time of writing, no further changes to the VAT registration threshold have been announced.
The threshold increased from £85,000 to £90,000 on 1 April 2024, giving many growing businesses additional room before compulsory VAT registration.
Many people search this question around the Budget or Autumn Statement because VAT thresholds can change following Government announcements. However, based on the latest confirmed information, the threshold remains £90,000.
1 April 2024
Threshold increased to £90,000
Increased from the previous £85,000 level
June 2026
No further changes announced
Threshold remains at £90,000
One of the biggest misconceptions
Many people believe the VAT threshold is based on your accounting year. It isn't. HMRC looks at your rolling taxable turnover over the previous 12 months.
Sarah is a sole trader.
During the last twelve months her taxable turnover reaches £91,500.
Because her turnover exceeds £90,000, she must normally register for VAT.
Also note: HMRC has another rule that applies where you expect your taxable turnover to exceed the VAT threshold during the next 30 days alone.
If your taxable turnover exceeds the registration threshold, you normally need to:
HMRC may charge:
Interest
Financial Penalties
Backdated VAT
Many businesses voluntarily register before reaching the compulsory threshold.
Whether voluntary registration is beneficial depends on your business, customers and future plans.
Many businesses register late because they:
Confuse turnover with profit
Wait until the end of the financial year
Forget the rolling 12-month calculation
Ignore online sales
Do not monitor turnover regularly
Assume VAT registration is optional once the threshold is exceeded
Keeping accurate bookkeeping throughout the year makes it much easier to stay compliant.
If your business is growing, we recommend that you:
Planning ahead can prevent unexpected VAT bills and penalties.
At Taxwise Accountancy, we help businesses across the UK stay compliant with VAT while reducing unnecessary stress and administration.
Whether you're approaching the VAT threshold or have already exceeded it, our experienced accountants can help you with:
If you're looking for professional support, learn more about our VAT Return Online Services, where we help businesses prepare and submit accurate VAT Returns while remaining fully compliant with HMRC requirements.
Need to verify a supplier's VAT registration? Our guide explaining How to Find a VAT Number by Company Name shows several simple ways to check whether a UK business is VAT registered before you trade with them or reclaim VAT.
You may also find these guides useful:
These guides provide further practical advice to help your business remain compliant while improving tax efficiency.
No. As of June 2026, there have been no announced changes since the VAT registration threshold increased to £90,000 on 1 April 2024.
The current compulsory VAT registration threshold is £90,000.
No. The VAT threshold is based on taxable turnover, not profit.
Yes. Taxable sales made through websites and online marketplaces generally count towards your VAT turnover.
Yes, once their taxable turnover exceeds the VAT registration threshold.
Yes. The same VAT registration rules apply regardless of your business structure.
Yes. Businesses below the threshold can choose to register voluntarily if it is beneficial for them.
HMRC may charge penalties, interest and require you to pay VAT that should have been accounted for earlier.
Yes. An accountant can register your business, advise on the most suitable VAT scheme and prepare your VAT Returns.
Whether you're approaching the VAT threshold or you've already exceeded it, Taxwise Accountancy can help.
We work with sole traders, limited companies, landlords, contractors, freelancers and growing businesses across the UK.
Our VAT specialists can help with:
If you're unsure whether you need to register for VAT or would like expert advice tailored to your business, we'd be happy to help.
Last Updated: June 2026