Last reviewed: November 2026
You must register for VAT if your taxable turnover goes over £90,000 in any rolling 12-month period, or if you expect it to go over £90,000 in the next 30 days alone. The threshold applies to sole traders, partnerships and limited companies alike.
The two tests
| Test | When it applies | Register by | VAT starts from |
|---|---|---|---|
| Looking back | Your turnover for the last 12 months goes over £90,000 | 30 days after the end of the month you went over | The first day of the second month after you went over |
| Looking forward | You expect turnover over £90,000 in the next 30 days alone | The end of that 30-day period | The day you realised you would go over |
Example: your rolling 12-month turnover passes £90,000 on 15 July. You must register by 30 August, and charge VAT from 1 September.
Common mistakes
- Checking once a year. The test is a rolling 12 months, so check every month, not just at your year end.
- Counting profit instead of turnover. It is your total VAT-taxable sales, before expenses.
- Registering late. HMRC will backdate your registration, and you will owe VAT on sales you never charged it on, plus a possible penalty.
Should you register voluntarily?
Registering below £90,000 can make sense if most of your customers are VAT-registered businesses, or if you buy a lot of equipment and materials. It rarely suits businesses selling to the public, because your prices go up by 20%.
We register businesses for VAT, choose the right scheme (including the Flat Rate Scheme) and file returns through Making Tax Digital. Ozvite sa nám if you are getting close to the threshold.
Source: GOV.UK – When to register for VAT.