01
The current threshold
The compulsory registration threshold is £90,000. The test is not based only on a financial year: taxable turnover must be monitored on a rolling 12-month basis.
- Taxable turnover includes standard, reduced and zero-rated supplies
- Exempt and outside-the-scope income need separate classification
- Temporary threshold breaches may have a different route
- Overseas businesses require a separate test
02
The next 30 days test
A business must also consider whether it expects taxable turnover to exceed the threshold in the next 30 days alone. This test can bring forward the registration point where a large contract or transaction is imminent.
- Board-approved contracts
- One-off transactions
- Evidence supporting the expectation
- Notification deadline
Primary sources
Tax guidance changes. These official sources were checked on 31 August 2026.
VAT thresholdsRegister for VATVAT Notice 700/1: registration