VAT Threshold Guide 2025 (UK)

Updated for 2025. General information — get tailored advice.

What is the VAT threshold?

The UK VAT registration threshold is £90,000 in taxable turnover on a rolling 12‑month basis. When your taxable sales exceed £90,000 in any 12 consecutive months, you must register.

How to calculate rolling 12 months

1. Add taxable sales for the last 12 months (not the calendar year).
2. Update the total every month.
3. If you cross £90,000, register within 30 days from the end of the month you passed the limit.

Use our free tracker: VAT Threshold Tracker spreadsheet.

Exceptions and zero‑rated supplies

Certain zero‑rated businesses can apply for an exception from registration, but you must apply to HMRC and demonstrate future turnover will fall below the threshold.

Voluntary registration

Registering early can allow VAT reclaims on costs and signal credibility to B2B clients, but adds compliance. We’ll help assess if it fits.

VAT Compliance Services

Need help with VAT? Email us.