VAT registration threshold stays at £90,000
The VAT threshold remains at £90,000, with the deregistration threshold at £88,000, as the government chose not to raise it further in the Spring Statement.
By Money Guide editorial team
Published:
The VAT registration threshold remains at £90,000 of taxable turnover for 2026/27, and the deregistration threshold at £88,000. The threshold was raised from £85,000 in April 2024 and has not been further increased.
Businesses approaching the threshold should monitor their rolling 12-month taxable turnover. Once turnover in any 12-month period exceeds £90,000, registration is required within 30 days, with VAT then chargeable on supplies from the start of the following month.
Voluntary registration below the threshold can be worth considering for B2B businesses that can recover input VAT on costs. For consumer-facing businesses, voluntary registration usually increases the effective price the customer pays.
The Flat Rate Scheme remains an option for smaller registered businesses; the Cash Accounting Scheme simplifies cashflow by paying VAT only when invoices are settled.