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VAT Threshold Tracker

The £90,000 VAT threshold is tested on a rolling 12 months, not the tax year. Enter your monthly turnover to see how close you are, how much you can invoice next month, and your deadline if you’ve gone over.

Rolling 12 monthsThe way HMRC actually tests it — every month.
Real deadlinesRegistration date and VAT start date, as GOV.UK sets them.
HeadroomHow much you can invoice next month and stay under.
Example figures — replace with your own. Example figures are filled in so you can see how it works — replace them with your own before relying on the result shown.

1. Your last 12 months

Enter VAT-taxable turnover for each month (sales excluding VAT, including materials you charge for and zero-rated or reverse-charge sales).

Turnover can’t be negative.

2. Looking ahead

Two other tests that can apply.

E.g. one big contract. Over £90,000 means registering straight away.

Month by month

Your running total

Your 12 months added up, oldest first. A warning sign marks any point where the total goes over £90,000.

The step-by-step working will appear here.

Guide

How the VAT threshold works for tradespeople

You must register for VAT if your VAT-taxable turnover goes over £90,000 in any rolling 12-month period. Every month-end, add up the last 12 months. If the total is over £90,000, you must register within 30 days of the end of that month, and you’re registered from the first day of the second month after.

GOV.UK’s example

Your turnover goes over £90,000 on 15 July. You must register by 30 August, and your VAT registration takes effect from 1 September.

There’s a second test too: if you expect turnover in the next 30 days alone to be over £90,000 (say, one big contract), you must register by the end of those 30 days, with VAT starting from the date you realised.

For construction, remember that materials you charge for count towards turnover, and work under the domestic reverse charge still counts even though the customer accounts for the VAT. Our VAT guide for tradespeople explains the reverse charge and the Flat Rate Scheme.

Things people forget

It’s not the tax yearThe test rolls every month. A busy summer can push you over in October, even if your tax-year total looks fine.
Materials countTurnover means everything you charge for, materials included — not just your labour or profit.
Reverse-charge sales countWork billed under the construction reverse charge still counts towards the £90,000.
Late registration costsIf you register late you owe the VAT you should have charged from the right date, plus possible penalties.
Exempt sales don’t countExempt supplies are left out, but most building work is standard or reduced rate, not exempt.
Prices after registeringIf your customers can’t reclaim VAT (homeowners), you’ll need to decide whether to raise prices or absorb it.

Frequently asked questions

What is the VAT threshold in 2026?

The VAT registration threshold is £90,000 of VAT-taxable turnover in a rolling 12-month period. The deregistration threshold is £88,000.

Is the VAT threshold based on the tax year?

No. It is based on any rolling 12-month period, so you should check your total at the end of every month, adding up that month and the 11 before it.

When do I have to register for VAT?

Within 30 days of the end of the month in which your rolling 12-month turnover went over £90,000. Your registration is effective from the first day of the second month after you went over. If you expect to go over £90,000 in the next 30 days alone, you must register by the end of those 30 days.

Do materials count towards the VAT threshold?

Yes. VAT-taxable turnover is the total value of everything you sell that is not exempt from VAT, including materials you charge your customers for.

Does reverse charge work count towards the VAT threshold?

Yes. Supplies made under the domestic reverse charge for building and construction services still count towards your VAT-taxable turnover, even though your customer accounts for the VAT.

Can I register for VAT voluntarily?

Yes, you can register even if your turnover is under £90,000. It can make sense if most of your customers are VAT-registered businesses, but you must then charge VAT and file VAT returns.

CalculatorMaking Tax Digital CheckerDo you need MTD for Income Tax, and from when? Uses the £50k, £30k and £20k thresholds.CalculatorDay Rate CalculatorThe day rate you need for the take-home you want, or what your current rate really leaves you.GuideVAT for tradespeopleThe £90,000 rolling threshold, what counts as turnover, the construction reverse charge and the Flat Rate Scheme.GuideMaking Tax Digital for Income TaxWho's in, from when, what "qualifying income" means for trades, quarterly updates and penalties.GuideHow to work out your day rateTurn the take-home pay you want into a day rate that covers costs, tax and the days you can't work.

Sources and review

Last reviewed: 21 October 2026. The rates and rules on this page were checked against GOV.UK guidance on that date by the HandySums team. We re-check every April, after each Budget and whenever GOV.UK changes. HandySums is independent and not an accountancy firm — see how we check our sums.

Estimate only — not tax advice. This tracker applies the VAT registration rules published on GOV.UK to the monthly figures you enter. It assumes all your turnover is VAT-taxable and that the latest month you enter is the first in which you went over. It does not cover exempt supplies, the 30-day test in detail, distance selling, group registration or exception from registration. Your actual bill depends on your full Self Assessment. Verify with HMRC or a qualified accountant. The figures you enter stay in your browser and are not stored.