VAT Registration Threshold Calculator
Keep an eye on your rolling taxable turnover so VAT registration never takes you by surprise.
Using 2026/27 UK tax rates
Rolling 12-month taxable turnover
£0.00
- Registration threshold
- £90,000.00
- Threshold used
- 0%
- Still below the threshold by
- £90,000.00
- Average month
- £0.00
Estimates only, based on the figures you entered. The rolling test is repeated at the end of every month.
What counts towards taxable turnover?
Broadly, the value of everything you sell that is not exempt from VAT or outside the scope of UK VAT — including zero-rated sales. It is not the same as profit, and it is not your accounting year total.
What this means
The compulsory registration threshold is £90,000.00 of taxable turnover. The main test is backward-looking: at the end of every month you add up the previous 12 months. If that total goes over the threshold, you generally have to register.
There is a second, separate test looking forward: if you expect taxable turnover alone to go over the threshold in the next 30 days, registration is triggered straight away.
This tool tracks your figures against the threshold. It does not tell you your registration date or make the decision for you — check the HMRC guidance linked below or speak to your accountant.
Quick answers
- What is the current VAT registration threshold?
£90,000 of taxable turnover, in force since 1 April 2024. Once your taxable turnover goes over this in a rolling 12-month period, you must register with HMRC.
- Is the VAT threshold based on my accounting year?
No. It is a rolling 12-month test, recalculated at the end of every month using the previous 12 months of taxable turnover — not your tax year or accounting year.
- What is the 30-day rule?
A separate forward-looking test: if you expect taxable turnover alone to exceed £90,000 in the next 30 days, you must register immediately, even if your rolling 12-month total is well below the threshold.
- Do I have to register the moment I go over £90,000?
You must notify HMRC within 30 days of the end of the month in which you exceeded the threshold. There are statutory deadlines, so check current GOV.UK guidance for the exact dates.
- Can I register for VAT voluntarily below the threshold?
Yes. Many businesses register before they are required to, usually to reclaim VAT on purchases or to look more established to VAT-registered customers.
Check the rolling total every month
The 12-month test moves each month, so the safest habit is a quick check at each month end rather than an annual review.
If registration is coming, it is worth deciding in advance how prices will change and whether customers can reclaim the VAT you charge.
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How we calculated it
Rolling turnover = the sum of taxable turnover for the last 12 months
Remaining headroom = £90,000.00 − rolling turnover
The trend estimate divides your remaining headroom by your average monthly turnover. It assumes trading continues at the same level, which rarely happens exactly, so treat it as a rough guide only.
Assumptions
- All figures entered are taxable turnover — standard, reduced and zero-rated sales.
- Exempt supplies and sales outside the scope of UK VAT are not included.
- The threshold is £90,000.00, in force since 1 April 2024.
- The trend estimate is an illustration, not a prediction.
How this calculator works
The rolling test moves every month: as a new month is added, the oldest one drops off. A single exceptional month can push you over even if your annual accounts look comfortably below the threshold.
Crossing the threshold does not always mean you must register straight away. HMRC allows for a temporary, one-off spike to be disregarded in some cases — known as exception from registration — if you can show turnover will drop back below the threshold shortly afterwards. Not every business that goes over £90,000.00 has to register automatically; the statutory conditions still need to be checked, ideally with an accountant or HMRC directly.
Once registered, use the VAT calculator for adding and removing VAT on your invoices, and the cash flow runway calculator to plan for VAT payments leaving the bank. Once you know your Corporation Tax position, the Corporation Tax calculator can help with the other big statutory deadline in a growing company's diary.
Worked examples
Steady turnover, comfortably below the threshold
A business bills a steady £6,500 a month, for a rolling 12-month total of £78,000. That is £12,000 below the £90,000.00 threshold, using 86.7% of it. At the same monthly rate it would take roughly 1.8 months to reach the threshold, so it is worth keeping an eye on turnover but there is no need to register yet.
A rolling total that has gone over
A business grows steadily to £8,000 a month across a full 12-month period, for a rolling total of £96,000. That is £6,000 over the £90,000.00 threshold, so it has used 106.7% of it and generally needs to register, subject to checking whether the exception from registration could apply for a genuinely temporary spike.
The 30-day forward-looking test
A business with no turnover so far signs a single contract worth £95,000, to be delivered within the next 30 days. Even though the rolling 12-month total is £0, the 30-day test is triggered immediately because expected turnover alone exceeds £90,000.00, so registration is required straight away rather than waiting for month-end.
Key terms explained
- Taxable turnover
The value of standard-rated, reduced-rated and zero-rated sales — everything that is a taxable supply for VAT purposes. It excludes exempt supplies and sales outside the scope of UK VAT, and it is not the same as profit or your total accounting-year income.
- Rolling 12-month turnover
The sum of taxable turnover for the most recent 12 months, recalculated at the end of every month. It is not fixed to your tax year or accounting year, so a strong month can push the total over the threshold even if your annual results look fine.
Common mistakes
Treating £90,000 as an annual accounting-year threshold
The threshold is tested on a rolling 12-month basis, recalculated every month — not against your accounting year or tax year end. A business can cross the threshold mid-year without realising, simply because the most recent 12 months add up differently to the last set of annual accounts.
Assuming every business over £90,000 must register automatically
Registration is required once the statutory conditions are met, but there is an exception for a genuinely temporary excess where turnover is expected to fall back below the threshold, and businesses can also register voluntarily below it. The headline figure is a trigger to check the rules properly, not an automatic rule in itself.
Missing the separate 30-day forward-looking test
Some businesses only check the rolling 12-month total and miss the second test: if you expect taxable turnover alone to exceed the threshold in the next 30 days — for example from one large contract — registration is triggered immediately, regardless of past turnover.
Leaving out zero-rated sales
Zero-rated sales are taxable supplies at 0% and count fully towards the threshold, even though no VAT is charged on them. Only exempt supplies and sales outside the scope of UK VAT are left out of the calculation.
Common questions
What is the VAT registration threshold?
£90,000 of taxable turnover. This has applied since 1 April 2024.
Is the £90,000 VAT threshold based on a tax year?
No. The main test is a rolling 12-month period, checked at the end of each month, not your accounting or tax year.
What is the 30-day forward-looking test?
If you expect your taxable turnover alone to exceed £90,000 in the next 30 days, you must register — even if the past 12 months were well below the threshold.
Does turnover include zero-rated sales?
Yes. Zero-rated sales are taxable supplies and count towards the threshold. Exempt supplies do not.
Can I register voluntarily below the threshold?
Yes. Many businesses register voluntarily so they can reclaim VAT on purchases. Whether it helps depends on your customers and costs.
What happens if I go over?
You must notify HMRC within the statutory deadline and start charging VAT from your effective date of registration. Check the current GOV.UK guidance for the exact timings.
Does every business that goes over £90,000 have to register?
In most cases, yes, but there is a specific exception for a genuinely temporary excess, where you can show HMRC that turnover will drop back below the threshold shortly afterwards. This is a statutory decision, so check the current guidance or speak to an accountant rather than assuming either way.
Why does the rolling 12-month test matter more than my accounting year?
Because HMRC recalculates it every month using the most recent 12 months of taxable turnover, not your fixed accounting period. A business can cross the threshold in, say, September even though its annual accounts to December still look comfortably below it.
What should I monitor if my turnover is close to the threshold?
Recalculate your rolling 12-month taxable turnover at the end of every month, and separately watch for any single contract or short period of trading that alone could exceed £90,000 in the next 30 days, since that triggers registration immediately.
Does taxable turnover include VAT itself?
No. Taxable turnover for the threshold test is the value of your sales before any VAT is added, since you are not yet charging VAT before registration.
What is the difference between this calculator and the VAT calculator?
This calculator checks whether your turnover means you need to register for VAT in the first place. The VAT calculator is for working out VAT to add to, or remove from, a price once you already know your VAT rate.
What happens after I register?
You get an effective date of registration, must start charging VAT on taxable sales from that date, and need to submit VAT returns — usually quarterly. Use the VAT calculator to work out the VAT on individual sales and purchases once you are registered.
Sources
Last reviewed: 7 September 2026 · Statutory rates: 2026/27. This calculator is information only and is not tax, accounting or financial advice.