VAT Registration & Deregistration Threshold 2026/27
Every VAT registration and deregistration threshold by tax year since 2017-18, plus the rolling 12-month test, the 30-day forward-looking test, voluntary registration, and how to deregister.
VAT thresholds by tax year
Both thresholds move on 1 April, not 6 April — VAT thresholds run to the VAT year, not the income tax year. They were frozen at £85,000 / £83,000 for seven tax years before rising on 1 April 2024, then held at the new level through 2026/27.
| Tax year | Effective from | Registration threshold | Deregistration threshold |
|---|---|---|---|
| 2026-27 | 1 Apr 2024 | £90,000 | £88,000 |
| 2025-26 | 1 Apr 2024 | £90,000 | £88,000 |
| 2024-25 | 1 Apr 2024 | £90,000 | £88,000 |
| 2023-24 | 1 Apr 2017 | £85,000 | £83,000 |
| 2022-23 | 1 Apr 2017 | £85,000 | £83,000 |
| 2021-22 | 1 Apr 2017 | £85,000 | £83,000 |
| 2020-21 | 1 Apr 2017 | £85,000 | £83,000 |
| 2019-20 | 1 Apr 2017 | £85,000 | £83,000 |
| 2018-19 | 1 Apr 2017 | £85,000 | £83,000 |
| 2017-18 | 1 Apr 2017 | £85,000 | £83,000 |
Every figure is verified against gov.uk (VAT registration and deregistration guidance), the 2017 statutory instrument that set the pre-2024 thresholds, and HMRC's 2024 threshold-increase announcement. See Sources below.
The two registration tests
You must register for VAT the moment either of two tests is met — the first looks backwards, the second looks forwards.
1. Rolling 12-month (historic) test
Your VAT-taxable turnover in the past 12 months — checked at the end of every month, not once a year — goes over £90,000. Your effective date of registration is the first day of the second month after the month you went over the threshold. Exceed it in May, and you must be registered and charging VAT from 1 July.
2. 30-day forward-looking test
You expect your VAT-taxable turnover to go over £90,000 in the next 30 days alone — for example, a single large contract. Your effective date of registration is the date you realised this, not the date turnover actually crosses the threshold, and you must notify HMRC within 30 days of that realisation.
"VAT-taxable turnover" is the total value of everything you sell that is not VAT-exempt or "out of scope" — standard, reduced and zero-rated sales all count, along with goods hired or loaned out, business goods used personally, and reverse-charge services received from overseas. Exempt supplies (insurance, certain education, most financial services) and out-of-scope income are excluded from both tests.
Deregistering for VAT
Once registered, you can ask HMRC to cancel your registration if you expect your VAT-taxable turnover over the next 12 months not to exceed the deregistration threshold of £88,000 (exactly the threshold qualifies). Deregistration is optional, not automatic — you keep charging VAT and filing returns until HMRC confirms cancellation.
The deregistration threshold sits £2,000 below the registration threshold by design, so a business whose turnover fluctuates around the boundary is not forced to register and deregister every few months. You must cancel within 30 days of stopping trading or otherwise becoming ineligible to be registered, or you risk a penalty; a business that sells to the UK, or expects to within 30 days, generally cannot deregister at all.
Voluntary registration below the threshold
Registration is not compulsory below £90,000 — but you can choose to register voluntarily at any turnover level. The main reason is reclaiming input VAT on business purchases, which matters most if you sell mainly to other VAT-registered businesses (who reclaim whatever you charge them) or have significant upfront costs. The trade-off is that you must then charge VAT on every taxable sale, quarterly Making Tax Digital returns, and full VAT records — a real cost if your customers are mostly consumers who cannot reclaim it.
Is the threshold changing again?
No change confirmed for 2026/27
The £90,000 / £88,000 thresholds are confirmed by HMRC as of this page's last update. The Autumn Budget on 28 October 2026 left the VAT registration threshold unchanged from April 2027. Nothing beyond the current thresholds is in force until the legislation is passed.
Frequently asked questions
What is the VAT registration threshold for 2026/27?
What is the VAT deregistration threshold?
Has the VAT threshold gone up for 2026/27?
Why was the VAT threshold frozen at £85,000 for so long?
What counts as VAT-taxable turnover?
Do I have to register for VAT if I'm below the threshold?
When does registration actually take effect after I go over the threshold?
Sources
- GOV.UK — Register for VAT: When to register
- GOV.UK — Register for VAT
- GOV.UK — Cancel your VAT registration
- GOV.UK — What counts as VAT-taxable turnover
- GOV.UK — VAT: increasing the registration and deregistration thresholds (1 April 2024)
- legislation.gov.uk — The Value Added Tax (Increase of Registration Limits) Order 2017 (SI 2017/290), Explanatory Memorandum
- GOV.UK — VAT Notice 700/1: Should I be registered for VAT?
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