UK VAT registration threshold: when a limited company must register

By Shaun Azam - ICAEW chartered accountant, ex-PwC, built a venture-backed startup that raised over $15m before training as an accountant

You must register for VAT if your taxable turnover for the last 12 months goes over £90,000, or if you expect it to go over £90,000 in the next 30 days alone. It is a rolling 12 months rather than your financial year or the tax year, and you have 30 days from the end of the month you went over to register.

Figures checked on GOV.UK on 24 October 2026

The figures

Item	Figure	Source
VAT registration threshold	Taxable turnover more than £90,000	GOV.UK
Backward test	Total taxable turnover for the last 12 months (rolling) goes over £90,000	GOV.UK
Deadline under the backward test	Register within 30 days of the end of the month you went over	GOV.UK
Effective date under the backward test	First day of the second month after you go over	GOV.UK
Forward test	You expect taxable turnover to go over £90,000 in the next 30 days alone	GOV.UK
Deadline under the forward test	Register by the end of that 30-day period	GOV.UK
Effective date under the forward test	The date you realised, not the date turnover went over	GOV.UK
Deregistration threshold (optional)	Taxable turnover less than £88,000	GOV.UK
Voluntary registration	Allowed below £90,000	GOV.UK
Standard VAT rate	20%	GOV.UK

Taxable turnover is everything you sell that is not VAT exempt or outside the scope of VAT, so zero-rated sales still count towards the £90,000.

A worked example

Both examples are GOV.UK's own.

The backward test. On 15 July your total taxable turnover for the last 12 months reaches £100,000, the first time it has gone over £90,000. You must register by 30 August, and your effective date of registration is 1 September, so you charge VAT on sales from that date.
The forward test. On 1 May you sign a single £100,000 contract that will be paid at the end of May. You know you will go over £90,000 in the next 30 days alone, so you must apply by 30 May, and your effective date of registration is 1 May.

The reason the effective date matters is that from that day HMRC expects VAT on your sales whether or not you have added it to your prices yet, and registering late does not move the date.

Frequently asked questions

Is the £90,000 VAT threshold based on my company's financial year?

No, it is any rolling 12-month period, so check at the end of every month whether the last 12 months of taxable turnover went over £90,000. A company can file two years of accounts under £90,000 and still have crossed the threshold on a rolling basis.

How long do I have to register once I go over £90,000?

If you went over in the last 12 months, you must register within 30 days of the end of the month you went over. If you expect to go over £90,000 in the next 30 days alone, you must register by the end of that 30-day period.

Can I register for VAT before I reach £90,000?

Yes, GOV.UK allows voluntary registration below £90,000. Once registered you pay HMRC any VAT you owe from the date they register you, and you can reclaim VAT on business costs.

When can I deregister from VAT?

You can ask HMRC to cancel your registration if your taxable turnover falls below £88,000, but this is optional. You must cancel within 30 days if you stop being eligible, for example because you stop making taxable supplies.

Do zero-rated sales count towards the threshold?

Yes, taxable turnover includes zero-rated and reduced-rated sales as well as standard-rated ones, and only VAT exempt and out of scope sales are left out.

VAT returns filed to HMRC for you - not another quarterly deadline to watch

Absolv's flat monthly fee includes VAT returns filed to HMRC through Making Tax Digital, reviewed by an ICAEW chartered accountant. To see what crossing £90,000 does to your own take-home, try the VAT threshold ambush, and this guide covers what to look for in a VAT accountant.

Sources

Checked on 24 October 2026. Thresholds, deadlines and penalties change, so check the GOV.UK page before you rely on a figure.