This tracker adds up your taxable turnover for the last 12 months and compares it with the £90,000 VAT registration threshold, so you can see how much headroom you have and when you must register. The test is a rolling 12 months, checked at the end of every month, not your tax year or accounting year. You must also register straight away if you expect turnover of more than £90,000 in the next 30 days alone. The deregistration threshold is £88,000.
Quick answers
- Registration threshold: £90,000 of taxable turnover in any rolling 12-month period, according to HMRC’s register for VAT guidance.
- Deregistration threshold: £88,000, confirmed for 2026/27 and 2027/28 in Budget 2026 Annex A.
- Deadline after going over: register within 30 days of the end of the month in which your rolling total went over £90,000.
- Effective date: the first day of the second month after the month you went over, so going over in July means registering by 30 August with VAT from 1 September.
- Next 30 days test: if you expect more than £90,000 in the next 30 days alone, register by the end of those 30 days, with VAT from the date you realised.
- What counts: standard, reduced and zero-rated sales count; exempt and out of scope sales do not.
How the calculator works
You enter taxable turnover for each of the last 12 months, starting with the month just ended, plus any turnover expected in the next 30 days alone.
- Rolling total. The 12 monthly figures are added together.
- Headroom. £90,000 minus the total, or “None” if you have reached it.
- Status. The tracker then gives one message:
- expected turnover in the next 30 days alone is over £90,000: register by the end of those 30 days;
- the rolling total is over £90,000: tell HMRC within 30 days of the end of the month;
- the total is £81,000 or more: you are within 10% of the threshold, so check every month;
- otherwise you are under the threshold.
If you leave months blank, it reminds you that the total is incomplete.
Worked example
A sole trader sold £7,000 a month for 11 months, then £9,500 in the month just ended.
| Item | Working | Result |
|---|---|---|
| Months 2 to 12 | 11 × £7,000 | £77,000 |
| Month just ended | £9,500 | |
| Rolling 12-month total | £77,000 plus £9,500 | £86,500 |
| Headroom | £90,000 minus £86,500 | £3,500 |
| Status | £81,000 or more | Within 10%: check monthly |
Next month, the oldest £7,000 month drops out. If the new month brings in £10,000, the total becomes £86,500 minus £7,000 plus £10,000, which is £89,500: still under, but only by £500. A £10,600 month would take the total to £90,100 and trigger registration.
How to check the threshold each month
Do this at every month end, because the rolling period moves forward one month at a time.
- Add up taxable sales for the last 12 months. Include zero-rated sales, goods hired out, and services under the reverse charge.
- Leave out exempt and out of scope income. Examples include most residential rents and insurance.
- Compare with £90,000. The test is “over” £90,000.
- Look ahead 30 days. A single large contract can trigger the next 30 days test even if your past 12 months are low.
- If you are over, register within the deadline. If you register late you must pay VAT on sales made since you should have been registered, and may be charged a penalty.
- Ask about an exception if it is a one-off. If turnover went over the threshold only temporarily, you can apply for a registration exception.
Our guide to the VAT registration threshold covers exceptions in more detail, voluntary VAT registration explains registering early, and VAT deregistration covers the £88,000 test.
Sources
- Register for VAT (HMRC)
- VAT registration: when to register (HMRC)
- Budget 2026 Annex A: rates and allowances (HM Treasury)
- Cancel your VAT registration (HMRC)
Frequently asked questions
Is the VAT threshold based on the tax year?
No. It is a rolling 12 months, so you check your total at the end of every month.
What is the VAT threshold for 2026/27?
£90,000 for registration and £88,000 for deregistration. Budget 2026 keeps both at the same levels from April 2027.
Do zero-rated sales count towards the threshold?
Yes. Zero-rated sales are taxable supplies and count. Exempt and out of scope sales do not.
When do I start charging VAT after going over?
From the first day of the second month after the month you went over. If you went over in July, your registration is effective from 1 September.
What happens if I register late?
You must pay VAT on sales made since the date you should have registered, and HMRC may charge a penalty depending on how much is owed and how late you are.