What is VAT Registration Threshold?

The VAT registration threshold is the level of taxable turnover above which a UK business must register for VAT with HMRC and begin charging 20% (standard rate) on eligible supplies. From April 2024 the threshold is £90,000 on a rolling 12-month basis, raised from £85,000. Businesses that exceed the threshold must register within 30 days of the end of the month in which they exceed it, or within 30 days if they anticipate exceeding it within the next 30 days alone. Voluntary registration below the threshold is permitted and allows input VAT recovery on purchases.