VAT
4 min read
· Updated
June 2026
Do I need to register for VAT?
The £90,000 threshold, how to check it, and when registering early makes sense.
You must register for VAT if your taxable turnover goes over £90,000 in any rolling 12-month period, not just your financial year.
How to check
At the end of every month, add up your sales for the last 12 months. If the total is over the threshold, you have 30 days to register. You also have to register straight away if you expect to go over it in the next 30 days alone.
Registering voluntarily
If your customers are mostly VAT-registered businesses, registering early can make sense: they reclaim the VAT, and you reclaim VAT on what you buy. If you sell to the public, it usually just puts your prices up.
Which scheme
The flat rate scheme and cash accounting can save time and help cash flow for smaller businesses. We'll tell you which one leaves you better off.
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This guide is general information, correct when it was last updated. Tax rules change and every situation is different, so please don’t act on it without talking to an accountant.
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