What is the VAT registration threshold in the UK for 2024/25?

You must register for VAT if your taxable turnover exceeds £90,000 in any rolling 12-month period. The threshold increased from £85,000 to £90,000 on 1 April 2024. You must register within 30 days of your taxable turnover exceeding the threshold. You can register online at gov.uk/register-for-vat. You can also register voluntarily below the threshold — which allows you to reclaim VAT on purchases, useful if you supply VAT-registered businesses. Once registered, you charge VAT at the applicable rate (20% standard, 5% reduced, or 0% zero-rated) on your supplies, file quarterly VAT returns (or monthly), and pay any VAT due to HMRC. If you're registering late, HMRC may charge a penalty for late registration based on the VAT you should have collected.

  • Threshold: £90,000 taxable turnover in any rolling 12-month period (from April 2024)
  • Must register within 30 days of exceeding the threshold
  • Voluntary registration available below threshold — useful to reclaim input VAT
  • Standard rate: 20%; reduced rate: 5%; zero-rated: 0%
  • File quarterly VAT returns via Making Tax Digital (MTD) compatible software

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