What is the VAT registration threshold in 2024?

From 1 April 2024 the UK VAT registration threshold is £90,000 of taxable turnover measured on any rolling 12-month period (up from £85,000). You must register within 30 days of the end of the month in which you exceed it, or if you expect to exceed it in the next 30 days alone.

Can I register for VAT below the threshold?

Yes. Voluntary registration below £90,000 lets a business reclaim VAT on its purchases and can add credibility with larger clients. The trade-off is that you must charge 20% VAT on most sales and file regular VAT returns under Making Tax Digital.

Tax & Business Structure

What is VAT Threshold?

The UK VAT registration threshold is the level of taxable turnover above which a business must register for VAT with HMRC. As of April 2024 it stands at £90,000 on a rolling 12-month basis. Businesses may also register voluntarily below the threshold to reclaim input VAT. The current standard VAT rate is 20%, with reduced (5%) and zero rates for specific goods and services.

VAT Threshold: frequently asked questions

What is the VAT registration threshold in 2024?: From 1 April 2024 the UK VAT registration threshold is £90,000 of taxable turnover measured on any rolling 12-month period (up from £85,000). You must register within 30 days of the end of the month in which you exceed it, or if you expect to exceed it in the next 30 days alone.
Can I register for VAT below the threshold?: Yes. Voluntary registration below £90,000 lets a business reclaim VAT on its purchases and can add credibility with larger clients. The trade-off is that you must charge 20% VAT on most sales and file regular VAT returns under Making Tax Digital.

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Yolist. (2026). What Is VAT Threshold? Yolist UK Business & Trade Glossary. Retrieved June 9, 2026, from https://yolist.uk/glossary/vat-threshold

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