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Guide

VAT

VAT is a tax on most goods and services. Businesses must register once taxable turnover passes the threshold, then charge VAT and file returns, usually quarterly.

Step by step

  1. 1Track your rolling 12-month taxable turnover
  2. 2Register within 30 days of the end of the month you went over the threshold (or sooner if you expect to go over in the next 30 days)
  3. 3Choose a VAT scheme (standard, flat rate, cash accounting)
  4. 4Charge VAT on invoices from your effective date
  5. 5Submit returns using MTD-compatible software

Common questions

What is the VAT threshold in 2026?

You must register for VAT if your taxable turnover goes over £90,000 in any rolling 12 months. That is not the same as the tax year.

When do I have to register?

Register within 30 days of the end of the month you went over the threshold. Register sooner if you expect to go over in the next 30 days.

Common mistakes

  • Checking turnover by tax year instead of a rolling 12 months
  • Registering late and owing VAT you never charged
  • Not keeping digital records

Related guides

VAT threshold calculator

Last checked against GOV.UK: 28 October 2026. Tax year 2026/27.

Not affiliated with HMRC. General information, not professional tax advice. Check GOV.UK or speak to a qualified adviser for your situation.