06/05/2026
Most founders assume the VAT threshold resets every April.
It doesn’t.
The £90,000 VAT registration threshold works on a rolling 12-month basis — not your financial year, not the tax year, but any 12-month period.
So if your turnover goes over £90,000 between, say, June this year and June next year, you’re legally required to register — even if your annual accounts don’t reflect it yet.
Miss it, and it can get expensive. HMRC may backdate your registration, meaning you’ll owe VAT on past sales you didn’t charge VAT on. If your customers can’t reclaim VAT, that cost comes straight out of your pocket.
The simplest way to stay safe?
Check your rolling 12-month turnover every month — not just at year-end.
If you’re getting close to £90k and you’re not VAT registered yet, speak to your accountant early — not after the threshold is crossed.
Ever had a near miss with VAT registration? Share your experience below.
