Self-employed2 min read · Updated 19 October 2026
UK VAT registration threshold: when you must register
When a business must register for VAT, how the rolling 12-month rule works, and how to add or remove VAT from a price.
The rolling rule
The £90,000 limit is checked every month on the last 12 months of sales, not the tax year. You must also register if you expect to pass it in the next 30 days.
Adding and removing VAT
£1,000 plus 20% VAT is £1,200. A price of £1,200 that includes VAT is £1,000 before VAT, with £200 VAT.
Voluntary registration
If your customers are other VAT-registered businesses, registering lets you reclaim VAT on costs. If your customers are the public, you will usually add 20% to prices or accept lower profit.
Common questions
What is the VAT threshold?
£90,000 of taxable sales in any rolling 12 months.
Do I charge VAT before I register?
No. You start charging from your registration date.