What is the VAT registration threshold in the UK?

The VAT registration threshold is £90,000 of taxable turnover in any rolling 12-month period (2025/26). If your turnover exceeds this, you must register within 30 days of the end of the month in which you crossed the threshold.

Can I register for VAT voluntarily below the threshold?

Yes. Voluntary VAT registration is allowed at any turnover level. It can be beneficial if your customers are VAT-registered businesses (they can reclaim the VAT you charge) or if you want to reclaim VAT on your own purchases.

How long does VAT registration take?

HMRC typically processes VAT registration applications within 30 days. You will receive a VAT registration certificate with your VAT number and the effective date of registration. You can charge VAT pending receipt of your number.

What is Making Tax Digital for VAT?

Making Tax Digital (MTD) for VAT requires all VAT-registered businesses to keep digital records and submit VAT returns using MTD-compatible software such as Xero, QuickBooks or FreeAgent. This has applied to all VAT-registered businesses since April 2022.

What VAT schemes are available for small businesses?

Small businesses can use the Flat Rate Scheme (pay a fixed percentage of turnover, keep the difference), the Cash Accounting Scheme (pay VAT when customers pay you), or the Annual Accounting Scheme (one return per year with advance payments). Each has eligibility thresholds.

How to Register for VAT in the UK (2026)

Last updated May 2026Reviewed against UK gov.uk sources

VAT is the most over-thought tax in the UK. The actual registration takes 20 minutes online. The real questions are: do I have to? should I, even if I don't have to? and which scheme should I pick? This guide answers all three before walking you through HMRC's form.

Direct answer

The threshold is £90,000 of rolling 12-month taxable turnover. Above it, registration is mandatory and the penalties for late registration are painful. Below it, registration is voluntary — and sometimes a smart commercial move. Use the key facts, step list and official source links on this page to confirm the decision before you spend money or register anything.

Threshold (2025/26): £90,000
Standard rate: 20%
Return frequency: Quarterly
Cost to register: £0

Checklist

Quick checklist

Confirm your rolling 12-month taxable turnover
Decide if voluntary registration helps you
Pick a scheme (Standard, Flat Rate, Cash, Annual)
Register at gov.uk/register-for-vat
Choose your effective date carefully
Sign up for Making Tax Digital
Update invoice templates with VAT number once issued

Section 01

When you MUST register

Your taxable turnover in any rolling 12 months exceeds £90,000 — register within 30 days of the end of that month.
You expect to exceed £90,000 in the next 30 days alone — register by the end of that 30-day period.
Taxable turnover means standard, reduced and zero-rated sales — NOT exempt sales (e.g. insurance, education).
Late registration penalties are 5–15% of the VAT you should have charged, plus the back-tax itself.

Section 02

When voluntary registration makes sense

If most of your customers are VAT-registered businesses, voluntary registration is often a free upgrade — they reclaim the VAT you charge, and you reclaim VAT on your costs. If you sell mainly to consumers, voluntary registration usually just makes you 20% more expensive overnight.

B2B service with significant costs (software, contractors) — almost always worth it.
B2C with thin margins (cafes, retail) — almost never worth it voluntarily.
Pre-revenue with big setup costs — register to reclaim VAT on equipment.

Section 03

Pick the right scheme before you register

01
Standard accounting
Charge 20% on sales, reclaim VAT on purchases, pay the difference quarterly. Default and fine for most. Requires accurate invoice-by-invoice records.
02
Flat Rate Scheme
Pay a fixed percentage of gross turnover (typically 7.5–16.5% depending on trade) and keep the difference. Simpler bookkeeping. Worse for businesses with lots of VATable costs. Limited to <£150k turnover.
03
Cash accounting
Account for VAT when invoices are paid, not raised. Helps cashflow if customers pay slowly. Available under £1.35m turnover.
04
Annual accounting
One return a year with payments on account. Cuts admin but suits stable, predictable businesses.

Section 04

The registration — step by step

01
Sign in to your Government Gateway
Use the business account if you have one; otherwise add VAT to your existing personal account.
02
Go to gov.uk/register-for-vat
Pick 'taxable turnover went over £90,000' or 'I want to register voluntarily'.
03
Confirm business details
Trading name, address, type (sole trader / Ltd), nature of business, expected turnover, bank details for refunds.
04
Pick your effective date of registration
Cannot be more than 4 years in the past or in the future. Most people pick the start of the next month.
05
Pick your scheme
Standard is the safe default. Flat Rate must be applied for separately if you want it.
06
Submit and wait for your VAT number
Usually arrives within 30 days. You can — and should — charge 'VAT pending' on invoices in the meantime and reissue once it arrives.
07
Sign up for Making Tax Digital
Once registered, you must file VAT returns through MTD-compatible software (Xero, QuickBooks, FreeAgent, Sage). Bridging software is also allowed if you live in spreadsheets.

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Common questions

How to register for VAT