VAT Registration Threshold Checker UK 2025 — Do You Need to Register?
You must register for VAT if your taxable turnover exceeds £90,000 in any rolling 12-month period (from April 2024). Use this tool to check whether you need to register, estimate your VAT liability, and compare standard vs flat rate scheme options.
VAT registration threshold 2025/26: £90,000 taxable turnover in any rolling 12-month period. Standard rate: 20%. Flat Rate Scheme available to businesses with turnover under £150,000. Always confirm with an accountant before registering.
VAT Thresholds 2025/26
| Threshold | Amount |
|---|---|
| Mandatory registration threshold | £90,000 (rolling 12 months) |
| Deregistration threshold | £88,000 |
| Flat Rate Scheme entry threshold | £150,000 expected taxable turnover |
| Annual Accounting Scheme | Up to £1.35 million VAT-exclusive turnover |
| Cash Accounting Scheme | Up to £1.35 million VAT-exclusive turnover |
Standard Rate, Reduced Rate & Zero Rate
Not all sales attract 20% VAT. The standard rate of 20% applies to most goods and services. The reduced rate of 5% applies to items like domestic energy and children's car seats. Zero-rated goods include most food, children's clothing, books, and new residential construction. Zero-rated sales count towards your registration threshold but you charge 0% VAT on them.
Should You Register Voluntarily?
If your customers are VAT-registered businesses (B2B), voluntary registration is often beneficial — you can reclaim VAT on your purchases, and your customers can reclaim the VAT you charge them, so it is cost-neutral for them. If your customers are mainly consumers (B2C) who cannot reclaim VAT, registering adds 20% to your prices, which can make you less competitive unless you absorb the cost.