What is the current VAT threshold?

The VAT registration threshold is £90,000 (from April 2024). You must register if your taxable turnover in any rolling 12-month period exceeds this, or if you expect it to exceed £90,000 in the next 30 days alone.

What is the flat rate scheme?

The flat rate scheme simplifies VAT by letting you pay a fixed percentage of your gross (VAT-inclusive) turnover instead of accounting for VAT on every purchase. The percentage varies by trade: electricians 9.5%, plumbers 9.5%, general building 9.5%, painters 9.5%.

When must I register for VAT?

You must register within 30 days of the end of the month where your rolling 12-month turnover exceeds £90,000. Your effective date of registration is the first day of the second month after crossing the threshold.

Can I voluntarily register for VAT below the threshold?

Yes. Voluntary registration lets you reclaim VAT on purchases and can make your business appear more established. However, it means charging customers 20% more (which may matter if your customers are not VAT-registered) and adds quarterly VAT return admin.

What happens if I deregister?

You can deregister if your taxable turnover falls below £88,000 (the deregistration threshold). You must account for VAT on any stock and assets you hold at deregistration, and you can't reclaim VAT on purchases after that date.

TradeCalculator

VAT Threshold Calculator

Track your rolling 12-month turnover against the VAT registration threshold

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How We Calculate This

Enter your monthly turnover for the past 12 months. The calculator tracks your rolling total against the £90,000 VAT registration threshold, identifying the month you would trigger registration. It also compares standard rate VAT (20% on sales minus VAT on purchases) with the flat rate scheme (a lower percentage of gross turnover) to show which is more advantageous for your business.

Frequently Asked Questions

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Last updated: March 2026

All calculations are estimates. Verify with your supplier.