By Tim Adler on Small Business UK – Advice and Ideas for UK Small Businesses and SMEs
The VAT threshold is the volume of annual turnover at which businesses are required to register for value-added tax (VAT).
Since April 2024, the UK VAT registration threshold has been £90,000.
VAT thresholds for previous years are as follows:
2014–2015 – £81,000
2015–2016 – £82,000
2016–2018 – £83,000
2019-2024 – £85,000
Since 1 April 2024 – £90,000
Once your business’s turnover reaches the VAT threshold, you have 30 days to register for VAT with HMRC. When this process is complete, your business has extra responsibilities including:
Charging VAT on your products or services
Paying VAT on the goods or services supplied by your vendors
Submitting your VAT return to HMRC every quarter (unless you opt into the Annual Accounting Scheme*) and maintaining a VAT account and records using Making Tax Digital (MTD)-compatible software
*Most VAT-registered businesses file quarterly VAT Returns (some monthly). If you opt into the Annual Accounting Scheme, you file one return per year with instalments. All VAT-registered businesses must keep digital records and file via MTD-compatible software
VAT registration
Registering for VAT is a legal requirement for businesses that exceed this threshold, and the threshold is reviewed regularly by HMRC.
You need to register for VAT