UK VATUK VAT registration threshold
GOV.UK says businesses have to register for VAT if their VAT taxable turnover is more than £90,000, and can choose to register below that (read on 13 November 2026). The deregistration threshold was not read for this site: see GOV.UK.
What registering does to your prices
Once registered you add VAT to your sales at the right rate, keep records, send VAT returns, usually every 3 months, and pay HMRC the difference between the VAT you charged and the VAT you paid on business purchases. At a 20% rate a £100 price becomes £120, so a customer who cannot reclaim VAT sees a rise of one fifth unless you absorb it.
| Price without VAT | At 20% | At 5% |
|---|---|---|
| £50.00 | £60.00 | £52.50 |
| £100.00 | £120.00 | £105.00 |
| £500.00 | £600.00 | £525.00 |
| £1,000.00 | £1,200.00 | £1,050.00 |
Common questions
What is the VAT registration threshold?
GOV.UK says a business must register when its VAT taxable turnover is more than £90,000, and may register if it is less.
What is VAT taxable turnover?
The total of everything you sell that is not exempt from VAT, at the standard, reduced or zero rate. GOV.UK has a separate page on how to work it out.
Sources
- GOV.UK, "VAT rates" (gov.uk/vat-rates), read on 13 November 2026.
- GOV.UK, "VAT thresholds" (gov.uk) and "VAT Flat Rate Scheme", including "Work out your flat rate" (gov.uk), read on 13 November 2026.
- HMRC, "VAT rates on different goods and services" (gov.uk), last updated 10 July 2026, read on 13 November 2026.
Rates read on 13 November 2026 from GOV.UK. VAT rules change at Budgets: check with HMRC before you rely on a figure. This site is independent and gives arithmetic, not tax advice.