VAT Threshold Monitor
Track your rolling 12-month turnover against the £90,000 VAT registration threshold. See headroom remaining.
Source: GOV.UK — Business tax
By Konstantin Iakovlev · Founder, Calks.uk
Last updated: · Verified against HMRC and GOV.UK 2026/27 rates
Rolling 12-Month Turnover
£72,000.00
£18,000.00 headroom before VAT registration
% of Threshold
80%
Avg Monthly
£6,000.00
Months to Threshold
3
Disclaimer
This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.
How It Works
This calculator helps you track your rolling 12-month turnover against the £90,000 VAT registration threshold. See headroom remaining. The calculation follows official UK rules and rates for the 2026/27 financial year, using data sourced directly from government publications.
All inputs are processed entirely in your browser — no data is sent to a server. You can adjust the figures as many times as you need to explore different scenarios. The results update instantly as you type.
UK VAT registration threshold 2026. Mandatory: £90,000+ turnover in any rolling 12-month period (NOT calendar year). Threshold raised from £85,000 in April 2024 — first increase since 2017. Deregistration threshold: £88,000 — fall below this for 12 months and can deregister. Voluntary registration: any level — useful if you sell B2B (clients reclaim VAT) or have significant input VAT to recover.
How to calculate rolling 12 months. Sum revenue from last 12 calendar months ending today. Sample: 1 May 2025 + 12 months = revenue from 1 June 2024 through 31 May 2025. Recalculate each month. Crossing threshold: must register within 30 days of end of month you crossed it. Sample: crossed £90k threshold on 15 March 2026 (cumulative 12 months ending Feb 2026) → register by 30 April 2026. VAT chargeable from 1 May 2026 onwards.
The 30-day forecasting rule. If you know in NEXT 30 days alone you'll exceed £90k (e.g. one massive contract): register immediately. Even if 12-month rolling sum NOT over £90k yet. Sample: bid for £100k contract in early April — register before contract starts even though current 12-month is only £70k. Avoid sudden mid-month VAT issues.
Penalties for late VAT registration. Late registration penalty: 5-15% of net VAT owed (varies by lateness and reasonableness). HMRC backdates VAT charge to date you should have registered — you owe VAT to HMRC even if you didn't charge it to customers. Sample: should have registered 6 months ago; £20k of sales since then = £4,000 VAT owed PLUS interest. Customers won't always pay retrospective VAT — you absorb it. Always monitor turnover monthly.
Should you register voluntarily? Yes if: selling B2B (your VAT-registered customers reclaim VAT anyway, you gain credibility + input VAT recovery on expenses). Yes if: significant input VAT (purchasing equipment, services) — recover via VAT returns. No if: selling B2C consumers (price increase by 20% makes you uncompetitive). No if: simple low-cost services — admin overhead exceeds benefit. Flat Rate Scheme (FRS): simplified VAT for under £150k turnover — pay fixed % of gross turnover, less paperwork. Compare carefully — LCT rate 16.5% kills FRS benefit for most service businesses since 2017.
How to use the VAT Threshold Monitor
- Enter your details in the input fields above
- The calculator applies current UK rates and thresholds automatically
- Results update in real time — adjust any figure to explore scenarios
- All calculations use official 2026/27 rates from GOV.UK — Business tax
Source: GOV.UK — Business tax
Frequently Asked Questions
- What does the VAT Threshold Monitor do?
- Track your rolling 12-month turnover against the £90,000 VAT registration threshold. See headroom remaining.
- What's the VAT threshold in 2026/27?
- £90,000 of taxable turnover in any rolling 12-month period (not financial year). The £90,000 threshold has applied since 1 April 2024 (up from £85,000). You must register within 30 days of exceeding it, with effect from the start of the month after you cross. You can also voluntarily register at any turnover level. Once registered, you must charge VAT on standard-rated supplies and submit VAT returns (typically quarterly via Making Tax Digital).
- Should I voluntarily register for VAT below £90,000?
- Yes if: most customers are VAT-registered businesses (they reclaim VAT, so it's neutral for them); you pay significant input VAT on supplies, equipment, or services; you sell zero-rated goods (children's clothes, books, most food) — you reclaim input VAT but customers pay 0% output. No if: customers are mostly consumers or non-VAT businesses (adding 20% makes you uncompetitive); your supplies are exempt (financial, healthcare, education); your admin capacity is limited.
- What happens when I cross the threshold?
- You have 30 days from end of the month you crossed to notify HMRC. VAT registration becomes effective from the first day of the month after you notify. Register online via gov.uk/register-for-vat. You'll receive a VAT number within ~10 days. Then charge VAT on all standard-rated invoices from your effective date, and submit MTD-compliant quarterly returns. Watch for inadvertent crossing — many businesses with seasonal peaks accidentally cross then can't reverse retroactively.