VAT registration

5. Calculate VAT taxable turnover

VAT taxable turnover is the total value of everything you sell that isn’t exempt from VAT.

You must register for VAT with HM Revenue and Customs (HMRC) if it goes over the current registration threshold in a rolling 12-month period. This isn’t a fixed period like the tax year or the calendar year - it could be any period, for example the start of June to the end of May.

The current threshold is £85,000. It usually goes up on 1 April each year. There are different thresholds for buying and selling from other EU countries.

What to include

To check if you’ve gone over the threshold in any 12-month period, add together the total value of your UK sales that aren’t VAT exempt, including:

Include any zero-rated items - only exclude VAT-exempt sales, and goods or services you supply outside of the UK.

If you’re over the threshold

You must register for VAT - though HMRC may allow you ‘exception from registration’ if your turnover goes above the threshold temporarily.

You must register straight away if you expect the value of everything you sell in the UK which isn’t VAT-exempt in the next 30 days alone to be over £85,000.

You should check your rolling turnover regularly if you’re close to going over the threshold.

Thresholds for previous tax years

Check historical information about VAT thresholds if you think you should have been registered in previous tax years.