Business Startup Tools2 min check

VAT Registration Checker

Find out whether you must register for VAT (UK threshold £90,000), or whether voluntary registration could help your business.

Short answer

You must register for VAT when your rolling 12-month taxable turnover exceeds £90,000, the threshold for 2026/27, or when you expect to exceed it in the next 30 days. Voluntary registration below the threshold may suit some businesses.

Step 1 of 20%

Calculation method, coverage and version

Inputs used: Rolling 12-month VATable turnover, Are you about to exceed £90,000 in the next 30 days?, Mostly who do you sell to?, Do you have significant VATable expenses (stock, equipment, software)?.
Calculation approach: The calculator applies the rules and assumptions described in “How it works” to the values you enter. Rounding can cause small differences from an official or provider calculation.
Coverage: Business Startup Tools. UK nations, tax treatment, local rules and provider criteria can differ; check the official sources shown below before acting.
Content version: No page-specific review date is currently published. Treat the result as indicative and verify current rules independently.

Not included unless explicitly requested: personal circumstances not entered, provider discretion, future rule changes, professional fees and case-specific exceptions. Read the full calculator methodology.

How it works

The checker takes your turnover, customer mix (B2B vs B2C) and input VAT spend and recommends register / wait / consider Flat Rate Scheme (16.5% for most service firms with low input VAT).

Worked example

B2B agency turning over £75k with £8k input VAT: voluntary registration recovers £1,600/year and looks more credible to enterprise buyers. B2C plumber on £75k: stay unregistered — registering forces a 20% price rise.

Who should use this

•Growing businesses near the threshold
•B2B service firms
•E-commerce sellers approaching £90k
•Contractors checking Flat Rate Scheme suitability

Common mistakes

×Missing the 30-day registration deadline (penalties + backdated VAT)
×Using Flat Rate Scheme when input VAT exceeds the flat rate saving
×Forgetting Making Tax Digital — quarterly returns via approved software

Frequently asked questions

What's Flat Rate Scheme?▾

Pay a fixed % of gross turnover (e.g. 14.5% for IT consultancy) instead of standard VAT accounting. Simpler but loses input VAT recovery.

Can I deregister?▾

Yes if turnover drops below £88,000 — but only after 12 months registered.

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