Glossary

VAT registration threshold

The VAT registration threshold is £90,000 of rolling 12-month turnover — cross it and registering for VAT becomes compulsory.

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£90,000Register above

Rolling 12moTest

Definition

The VAT registration threshold is the level of VAT-taxable turnover — £90,000 on a rolling 12-month basis — above which a business must register for VAT. You must also register if you expect to exceed it in the next 30 days.

In plain terms

Cross this turnover in any rolling twelve months and registering becomes compulsory. Below it, you can still register voluntarily if it suits you.

Why it matters for your company

The threshold creates a real decision point for growing businesses — registering changes your pricing and admin. Watching your rolling turnover against it avoids late registration and penalties — see the registration process.