by Asim Abbas
11 November 2026 
Do you need to register for VAT? The £90,000 threshold explained
Do you need to register for VAT? The £90,000 threshold explained
Once your business is successful, VAT becomes a key question. Register too late and you could owe VAT you never charged. Register too early and you may price yourself out of the market.
- You must register when taxable turnover passes £90,000
- It’s based on a rolling 12 months, not the tax year
- Register within 30 days of the end of the month you passed it
- You can deregister below £88,000
The VAT registration threshold is £90,000, but it’s based on a rolling 12-month period, not the tax year, which catches many people out.
This guide explains when you must register, when it’s worth registering voluntarily and what happens next.
When you must register
- Backward look: your taxable turnover for the last 12 months went over £90,000
- Forward look: you expect turnover in the next 30 days alone to go over £90,000
Check at the end of every month by adding up the previous 12 months. Taxable turnover includes standard, reduced and zero-rated sales, but not exempt sales.
Your sales from 1 November 2025 to 31 October 2026 total £91,200. You passed the threshold at the end of October, so you must register by 30 November 2026, and you’re VAT registered from 1 December 2026.
Income tax calculator
See how VAT pricing affects your profit.
What if you register late?
HMRC backdates your registration to when it should have started. You owe VAT on sales since then, even if you didn’t charge it, plus a penalty for late notification. Act quickly if you’ve gone over.
Should you register voluntarily?
- Good if: your customers are VAT-registered businesses, you make zero-rated sales, or you have big start-up costs
- Less good if: you sell to consumers who can’t reclaim VAT, as your prices rise or your margins fall
What happens after registration
- Charge VAT at 20% (or the reduced or zero rate) on taxable sales
- Issue VAT invoices with your VAT number
- Reclaim VAT on business costs
- Keep digital records and file returns through Making Tax Digital software
- Consider schemes like the Flat Rate Scheme or cash accounting
Fixed-fee accountancy support
Transparent monthly packages for sole traders, landlords and limited companies. Fixed fees agreed upfront, VAT included.
Get a fixed-fee quoteCall 0161 531 4179Deregistering
If your taxable turnover falls below £88,000, you can apply to deregister. You may have to pay VAT on stock and assets you still hold. HMRC explains the threshold rules on GOV.UK. Our VAT services handle registration and quarterly returns.
What should I do next?
At the end of every month.
Large contracts can trigger it.
Based on who your customers are.
Our VAT team handles it.
Frequently Asked Questions
What is the VAT threshold for 2026/27?
£90,000 of taxable turnover in a rolling 12-month period. The deregistration threshold is £88,000.
Is the VAT threshold based on profit or sales?
Sales. It’s your taxable turnover, before expenses.
Can a sole trader register for VAT?
Yes. VAT registration applies to the person or business, not the structure. Sole traders, partnerships and companies can all register.
What if I go over the threshold temporarily?
If you can show turnover will fall below £88,000 in the next 12 months, you can ask HMRC for an exception.
Can Wingate register my business for VAT?
Yes. We register you, set up MTD for VAT software and file your returns.
Need help with this? Wingate Accountants offers fixed-fee online accountancy support across the UK. Call 0161 531 4179 or request a quote at wingateaccountants.co.uk.
About the Author
Stephen Reynold
I’m Stephen Reynold, an accountant at Wingate Accountants. I work with sole traders and small companies, turning tax rules into clear, practical next steps.
