What is the VAT Threshold?

The VAT Threshold is the maximum VAT taxable turnover a business can earn in a 12-month period before you are legally obliged to register for VAT. The VAT threshold for businesses from April 1 2017 is £85,000.

You can work out your VAT taxable turnover by adding up the value of all the goods and services you sell that are not exempt from VAT. Once your turnover exceeds the VAT threshold in any 12-month period you must register for VAT with HMRC. The 12-month period is not fixed but ‘rolling’, so for example it could be the start of July one year to the end of June the next.

VAT Threshold's explained
Circumstance Threshold
VAT registration More than £85,000
Registration for distance selling into the UK More than £70,000
Registration for bringing goods into the UK from the EU More than £85,000
Deregistration threshold Less than £83,000
Completing simplified EC Sales List £106,500 or less and supplies to EU countries of £11,000 or less

VAT threshold advice

If you are using Numberworx, we will advise you if your rolling turnover is approaching the threshold at which you need to register for VAT. We can also help you decide if it’s worth registering if you are below the threshold.

Ask away!

HMRC usually sets the VAT threshold on 1 April every year. If you have any questions regarding this or any previous tax years’ thresholds, just ask!