How to register for VAT in the UK (2026-27 guide)

VAT registration can feel like a big admin milestone – but it doesn’t have to be complicated. Whether you’re approaching the threshold for the first time or taking over an existing business, knowing what to do (and when) makes the whole process much smoother.

This guide covers everything you need to know: what the current VAT threshold is, who needs to register, how to do it, and what happens if you leave it too late.

What is the VAT threshold for 2026-27?

The VAT registration threshold is £90,000. This figure has been in place since 1 April 2024, when it increased from £85,000 – ending a freeze that lasted since 2017.

If your business’s taxable turnover goes over £90,000 in any rolling 12-month period, you must register for VAT. The same applies if you expect your turnover to exceed that figure in the next 30 days.

Once you’re registered, you don’t need to register again – unless you’ve deregistered at any point.

Here’s a quick overview of the thresholds that apply depending on your situation:

Business type	Threshold
UK businesses	£90,000
Non-UK businesses	£0
Distance selling into Northern Ireland from the EU	€10,000
Bringing goods into Northern Ireland from the EU	£90,000

The deregistration threshold – the point at which you can cancel your VAT registration – sits at £88,000 for most UK businesses. For businesses in Northern Ireland, the deregistration threshold is £90,000.

Can I register voluntarily if I’m below the threshold?

Yes, voluntary VAT registration is an option even if your turnover is below £90,000. There are real benefits to doing this – most notably, the ability to reclaim VAT on business purchases.

But it’s not right for everyone. VAT registration means more admin, and if you collect more VAT from customers than you pay out, you’ll owe the difference to HMRC. It’s worth thinking about what makes sense for your specific business before going ahead.

Does the VAT threshold apply to sole traders?

Yes – the £90,000 threshold applies regardless of your business structure. If you’re a sole trader and your annual taxable turnover exceeds £90,000, you’ll need to register for VAT, just like a limited company would.

How to work out your taxable turnover

Your taxable turnover includes the total value of everything you sell that isn’t VAT exempt or out of scope. That covers standard-rated, reduced-rated, and zero-rated goods and services, as well as:

• goods you hire or loan to customers
• business goods used for personal reasons
• goods bartered, part-exchanged, or given as gifts
• services received from businesses abroad where you apply the reverse charge

VAT-exempt sales – such as certain financial services and insurance – don’t count towards your taxable turnover.

When do you need to register for VAT?

Timing matters here. There are two scenarios that trigger compulsory registration:

If you’ve exceeded the threshold in the last 12 months

Check your rolling 12-month turnover at the end of each month. If it goes over £90,000, you have 30 days from the end of that month to register. Your effective date of registration will be the first day of the second month after you went over the threshold.

For example: your turnover exceeds £90,000 on 15 July. You must register by 30 August, and your effective registration date will be 1 September.

If you expect to exceed the threshold in the next 30 days

If you realise your turnover will go over £90,000 within the next 30 days – because you’ve just signed a large contract, for example – you must register by the end of that 30-day period. Your effective date of registration is the date you realised, not the date your turnover actually crosses the threshold.

For example: on 1 May, you sign a £100,000 contract. You must submit your VAT registration application by 30 May, and your effective registration date will be 1 May.

How long does VAT registration take?

VAT registration typically takes 30 to 40 days. It can take longer during busy periods for HMRC, or if your records aren’t complete when you apply. Getting your documentation together before you start will speed things up.

Once registered, HMRC will send you a VAT certificate by post. This confirms your VAT number, your effective date of registration, and your first VAT return details.

You can’t charge VAT or show it on invoices until you have your VAT number. But you may still need to account for VAT during the period between your effective registration date and receiving your number.

What is a VAT certificate?

Your VAT certificate is the official confirmation of your VAT registration. You need it to:

• charge VAT on your sales
• show VAT on invoices
• include your VAT number on your business website

Keep your certificate details up to date – including your address and turnover. You can update any details through HMRC’s changes to your details page.

What happens if you register for VAT late?

If you miss the deadline, you’ll need to pay VAT on all sales from the date you should have registered. You may also face a late registration penalty from HMRC, depending on how much you owe and how overdue your registration is.

If you think you’ve already exceeded the threshold, tell HMRC as soon as possible. You’ll need to work out when your taxable turnover first went over £90,000 and register from that date.

How to deregister for VAT

You can cancel your VAT registration if your taxable turnover drops below the deregistration threshold of £88,000. Deregistration isn’t compulsory – you can stay VAT registered even if your turnover falls below this level.

In some cases, you must cancel your registration. For example, if you stop trading or no longer make VAT taxable supplies. You can cancel your VAT registration online through your HMRC business tax account.

If you want to transfer a VAT registration – for example, because your business structure has changed – visit the government’s page on how to transfer a VAT registration.

VAT registration FAQs

What is the VAT threshold for 2026-27?

The VAT registration threshold is £90,000. This threshold has been in place since 1 April 2024. You must register if your taxable turnover exceeds this amount in any rolling 12-month period, or if you expect it to within the next 30 days.

How do I register for VAT as a sole trader?

Sole traders register for VAT the same way as any other business – online through HMRC’s VAT registration service, or by post using the VAT1 form. You’ll need your National Insurance number, UTR number, proof of ID, and details about your turnover and business.

How long does VAT registration take?

It typically takes 30 to 40 days for HMRC to process a VAT registration. It may take longer during busy periods. Having all your documents ready before you start will help avoid delays.

Can I register for VAT if I’m below the £90,000 threshold?

Yes, you can register for VAT if you’re below the £90,000 threshold. Voluntary VAT registration is available to any UK business, regardless of turnover. It allows you to reclaim VAT on business purchases. However, it also means more admin and potentially higher payments to HMRC, so it’s worth weighing up the pros and cons first.

What happens if I register for VAT late?

If you register late, you must pay VAT on all sales from the date you should have registered. HMRC may also charge a late registration penalty based on how much you owe and how overdue your registration is.

What is the VAT deregistration threshold?

The deregistration threshold is £88,000. If your taxable turnover falls below this, you can apply to cancel your VAT registration – though you don’t have to. For businesses in Northern Ireland, the deregistration threshold is £90,000.

Do I need to register for VAT if my business is based outside the UK?

Yes, you still need to register for VAT even if your business is based outside the UK. Non-UK businesses don’t have a threshold. You must register for VAT as soon as you supply goods or services to the UK – or as soon as you expect to do so within the next 30 days.

What is the difference between VAT exemption and zero-rating?

Zero-rated goods and services are technically taxable but at a 0% rate – they still count towards your taxable turnover. VAT-exempt goods and services are outside the VAT system entirely and don’t count towards your taxable turnover.