What is the VAT registration threshold in the UK?
Answered 11 March 2026
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UK VAT Registration Threshold
What the law says
The VAT registration threshold is set by Schedule 1 to the Value Added Tax Act 1994 (VATA 1994), as amended by statutory instrument.
With effect from 1 April 2024, the threshold was increased from £85,000 to £90,000. This was effected by the Value Added Tax (Increase of Registration Limits) Order 2024, which substituted "£90,000" for "£85,000" in paragraph 1(1)(a), (1)(b), (2)(a) and (2)(b) of Schedule 1 to VATA 1994.
The same Order also raised the deregistration threshold (the level below which a registered person may apply to cancel their registration) from £83,000 to £88,000, by substituting "£88,000" for "£83,000" in paragraph 1(3) and paragraph 4(1) and (2) of Schedule 1.
Under paragraph 1(1)(a) of Schedule 1 to VATA 1994, a UK-established person becomes liable to register at the end of any month if the value of their taxable supplies in the preceding 12 months exceeds the threshold.
A person does not become liable to register if HMRC is satisfied that the value of their taxable supplies in the following 12 months will not exceed the threshold (the "exception from registration").
HMRC guidance / practice
HMRC confirms that the VAT registration threshold is prescribed in Schedule 1, paragraph 1 of VATA 1994 and is amended by statutory instrument, usually annually.
Any business (including charities and trading subsidiaries) that makes taxable sales — i.e. supplies liable to VAT at the standard, reduced, or zero rate — in excess of the registration threshold must register for VAT. This is not optional, and there are penalties for failing to register on time.
Businesses whose taxable turnover is below the threshold may register voluntarily, provided they can satisfy HMRC that they make or intend to make taxable supplies.
Summary table:
| Threshold | Amount (from 1 April 2024) |
|---|---|
| Registration threshold | £90,000 |
| Deregistration threshold | £88,000 |
Citation sources
A trader whose taxable turnover does not exceed a specified registration threshold (`the VAT registration threshold’) does not need to register as a taxable person but may do so if they wish. However, if the trader wishes to register they must satisfy HMRC that they make or intend to make taxable supplies in the course or furtherance their business. The VAT registration threshold is subject to alteration. It is prescribed in Sch1 para1 Value Added Tax Act 1994 and is amended by statutory instrum
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Any business (and this may include a charity or its trading subsidiary) that makes taxable sales in excess of a set figure, known as the VAT registration threshold must register for VAT. Taxable sales are business transactions that are liable to VAT at the standard, reduced or zero rate. Guidance on whether something is a business transaction can be found in section 4. Many charities make taxable sales and if your level of income from those sales exceeds the VAT registration threshold you will n
Citation and commencement 1 This Order may be cited as the Value Added Tax (Increase of Registration Limits) Order 2024 and comes into force on 1st April 2024. Amendment of the Value Added Tax Act 1994 2 1 The Value Added Tax Act 1994 is amended as follows. 2 In Schedule 1 (registration in respect of taxable supplies: UK establishment) — a in paragraph 1(1)(a), (1)(b), (2)(a) and (2)(b), for “£85,000” substitute “£90,000” ; b in paragraph 1(3), for “£83,000” substitute “£88,000” ; c in paragraph