What is the UK VAT Threshold

What is the UK VAT Threshold? The current threshold for VAT is £85,000. HMRC do review this figure on a regular basis, so it is worth checking on their website.

To see if your business reached this figure you must look at your turnover of both goods and services during the past 12 months. If you are expecting your turnover to reach this figure within the next 30 days you must also register for VAT.

VAT Exemption

If your business is only going to go over the threshold for a short while, as long as you can show that your longer term trading will be below £75,000 you can apply for exemption. You can do this by completing the VAT registration form.

Even if your business does not reach the VAT threshold it is possible to apply voluntarily.

If your business only supplies goods or services which are exempt from VAT you will not be able to register.

Your business does not need to be a Limited company to register it can also be as an individual, partnership, club association, charity or any other organisation.

To register for VAT look at how to register for VAT.


If you are not sure whether you need to register your business look at the HMRC website.

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