VAT Registration Threshold Calculator United Kingdom
This VAT registration threshold calculator checks your UK turnover against the £90,000 limit, the 30-day forward test and the £88,000 deregistration limit.
What it does
The VAT Registration Threshold Calculator tells a UK business whether it must register for VAT. You must register once your rolling 12-month taxable turnover goes over £90,000, or if you expect to pass £90,000 in the next 30 days alone. It shows the headroom you have left before you hit the threshold.
Data sources & parameters
The figures below drive this calculator. We keep them aligned with the latest official guidance, and each result recalculates automatically whenever a value changes.
| Parameter | Value | Source | Last updated |
|---|---|---|---|
| VAT registration threshold | 90,000 | gov.uk | Effective 2026-04-01VAT registration threshold (taxable turnover over 12 months) |
| VAT deregistration threshold | 88,000 | gov.uk | Effective 2026-04-01VAT deregistration threshold |
We always strive to use the latest data for every variable so our results and reports are as accurate as possible. Even so, errors are possible — you should not rely on this tool or its report alone, and we accept no liability for any decision made based on it.
The formula
Headroom = max(0, £90,000 − turnover); amount over = max(0, turnover − £90,000). You must register if turnover > £90,000 or expected next-30-day turnover > £90,000. You can apply to deregister below £88,000.
How it works
It compares your rolling last-12-months taxable turnover with the £90,000 registration threshold to work out how much headroom remains, or how far over you already are. If you also expect a spike in the next 30 days, it flags the forward-looking test that can trigger registration on its own.
Where it is used
- Checking how close a growing business is to compulsory VAT registration
- Planning ahead when a large one-off contract lands in the next 30 days
- Seeing whether a shrinking business can apply to deregister
Worked example
With rolling turnover of £85,000.00 you have … of headroom before the … registration threshold, and you are … over it.
Go over the VAT registration threshold without registering and you can face backdated VAT bills and penalties; register too early and you take on paperwork you may not need. This calculator compares your rolling 12-month taxable turnover with the £90,000 threshold, shows how much headroom is left, and flags when the separate 30-day test applies.
What the VAT registration threshold is
The UK has one compulsory registration threshold, £90,000 of taxable turnover. It is not linked to profit, the tax year or your accounting period. At the end of each month you total your taxable sales for the previous twelve months, and once that total exceeds £90,000 you have passed the threshold and must register. The threshold has been £90,000 since 1 April 2024, up from £85,000.
The two tests that trigger registration
Either test on its own makes registration compulsory.
The rolling test looks back: taxable turnover over the last 12 months above £90,000. If you pass it, you must register within 30 days of the end of the month in which you went over, and registration takes effect from the first day of the following month.
The 30-day test looks forward: if at any point you expect taxable turnover of more than £90,000 in the next 30 days alone, you must register immediately, with effect from the date you formed that expectation. It is aimed at a business that suddenly wins a large contract. Enter expected turnover for the next 30 days in the advanced options to see whether it applies while your rolling total is still under the limit.
Reading the headroom figure
The main output is your headroom: £90,000 minus your current rolling turnover, the margin before registration becomes compulsory. If it reaches zero, the calculator shows how far over the threshold you are, which means you need to register. A business at £85,000 with £5,000 of headroom can plan its next few invoices; one at £89,000 needs to act.
Deregistration when turnover falls
If your taxable turnover falls below the £88,000 deregistration threshold, or you expect it to stay below that over the next 12 months, you can apply to HMRC to cancel your VAT registration. The gap between £90,000 and £88,000 stops businesses near the line from having to register and deregister repeatedly. Cancelling is optional, and many businesses stay registered so they can keep reclaiming VAT on purchases.
A worked example
A consultant’s rolling 12-month taxable turnover is £85,000, leaving £5,000 of headroom, so she is under the threshold. She is offered a £12,000 project to be delivered within the next month. That is far below £90,000, so the 30-day test does not apply, but if nothing drops out of her rolling total the new work takes it to £97,000, £7,000 over the threshold, and she must then register within 30 days of that month end. Checking in advance lets her plan her pricing and timing.
Assumptions and limitations
This is a planning estimate, not a substitute for HMRC guidance or professional advice. It uses the £90,000 registration threshold and £88,000 deregistration threshold, stored as parameters sourced from gov.uk and reviewed against each Budget. It assumes the figure you enter is taxable turnover: standard, reduced and zero-rated sales, excluding exempt supplies, capital asset sales and VAT itself. It does not cover the special rules for businesses established outside the UK, distance selling or taking over a going concern, all of which can change when you must register. If you are close to the threshold, confirm the position with an accountant or HMRC.
About This Tool: VAT Registration Threshold
VAT registration threshold: use this tool to get an instant, accurate estimate. The figures follow official GOV.UK guidance and every rate and threshold is kept up to date for 2026. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.
Tax year 2026
Frequently asked questions
What is the VAT registration threshold for 2026/27?
How is the rolling 12-month turnover measured?
What is the 30-day forward-looking test?
Can I cancel my VAT registration if turnover falls?
What counts as taxable turnover for the threshold?
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