Approaching £90,000 turnover? The VAT registration check growing businesses should make
Practical review dated 23 October 2026 for UK-established small businesses. Growing sales make a monthly VAT check worthwhile. These are existing rules, not a threshold change announced today. HMRC's VAT Notice 700/1 shows an update date of 5 August 2026.
The £90,000 test measures turnover, not profit
Registration is generally required once VAT-taxable turnover for the previous 12 months exceeds £90,000. Zero-rated sales count. Exempt and out-of-scope sales are generally excluded.
Do not wait for your accounting year end
Check at each month end using the preceding 12 months. At the end of October, for example, the window starts at the beginning of the previous November. Under this test, notify HMRC within 30 days after the month of crossing the threshold; registration takes effect on the first day of the second month afterwards.
A large order needs a separate check
If you expect taxable sales to exceed £90,000 in the next 30 days alone, a separate test applies. Registration takes effect when that expectation arises, and the application is due within that 30-day period.
Three practical steps for this month
ZipTax suggests keeping a monthly sales schedule, flagging sales whose VAT treatment is unclear, and discussing large forthcoming orders with your accountant. Your bank balance or net profit cannot replace the turnover calculation.
Late registration can leave VAT payable from the correct registration date and may lead to a penalty. Overseas-established businesses and specialist activities need separate consideration; this overview does not cover every exception.
Review your position with ZipTax
Bring monthly sales totals and a description of your main activities to a consultation. We can discuss the registration obligation and the records needed to prepare. Rules checked on 23 October 2026.
