Acton Cliff Accountancy

When do you need to register for VAT?

By Tracey Hargraves ACAUpdated 5 min read

In short

  • You must register when taxable turnover for the last 12 months exceeds £90,000.
  • You must also register if you expect to go over £90,000 in the next 30 days alone.
  • Voluntary registration can help if your customers are VAT-registered businesses.
Registration threshold
£90,000
Deregistration threshold
£88,000
Standard rate
20%

Measuring the threshold

It's a rolling 12-month test, not your financial year. Check it at the end of every month. Once you've gone over, you have 30 days to register, and you must charge VAT from the effective date.

Voluntary registration

If most of your customers can reclaim VAT, registering early lets you reclaim VAT on your own costs with little impact on them. If you sell to the public, registering usually means either raising prices or accepting lower margins.

Schemes worth knowing

Depending on how you trade, one of these may suit you better:

  • Flat Rate Scheme: simpler returns, based on a fixed percentage of turnover
  • Cash Accounting: pay VAT only when your customers pay you
  • Annual Accounting: one return a year, with interim payments

Figures are based on HMRC guidance for the 2026/27 tax year and were checked on 28 September 2026. This guide is general information, not personal advice.

How Acton Cliff can help

Returns prepared and filed on time, with the right treatment applied. Talk it through with Tracey. A ten-minute call is usually enough to work out your next step.

Call 01606 218302About our VAT service

Related guides

Tax

Self Assessment deadlines and how to avoid penalties

Tax

Making Tax Digital for Income Tax: what changes for you

Tax

How to pay yourself tax-efficiently as a company director

Let's have a proper conversation about your numbers

No jargon, no obligation. Tell us where you are and we'll tell you honestly how we can help.

Call 01606 218302Send an enquiry

Prefer email? info@actoncliff.co.uk