You must register for VAT when your taxable turnover in any rolling 12-month period crosses £90,000 (frozen since 2024, expected to remain at £90,000 in 2026-27). You can also register voluntarily below the threshold. Most new freelancers do not need to register.
The threshold, in plain English
The £90,000 threshold is the VAT registration threshold for 2024-25, 2025-26, and 2026-27. It has been frozen at this level since April 2024 and HMRC has confirmed it will not change for the 2026-27 tax year. You count taxable turnover as the total value of everything you sell that is subject to VAT.
When does the rolling 12-month period start?
There are two ways to measure it: looking back (at the end of every month, look at the previous 12 months; if the total is over £90,000, you must register by the end of the following month) and looking forward (if you expect to exceed £90,000 in the next 30 days, you must register before you start).
Should I register voluntarily if I am below the threshold?
The case for voluntary registration: you can reclaim VAT on business expenses, you look more established, you avoid the awkward "I am not VAT-registered" conversation with bigger customers. The case against: you must charge VAT on all your invoices, you have quarterly VAT returns, you need a VAT-registered accountant.
How to register
- Go to gov.uk/vat-registration and start the registration
- You will need: business details, NI number or company number, business bank account details, turnover figures for the last 12 months, details of any business associates
- Approval typically takes 7-30 days
- Once registered, you must charge VAT on all taxable supplies from your effective date of registration, file a VAT return every 3 months, and pay VAT owed to HMRC by the deadline (1 month and 7 days after quarter end)
What if I do not register when I should?
- Failure to notify penalty: between 5% and 30% of the VAT you should have charged
- Backdated VAT liability: you must pay VAT on all the sales you should have charged VAT on
- Interest on the late payment
- Possible criminal prosecution for serious or repeated cases
Frequently asked
What is the VAT threshold for 2026-27?
£90,000 in any rolling 12-month period. Frozen at this level since April 2024, expected to remain at £90,000 in 2026-27.
Should I register for VAT voluntarily below the threshold?
Sometimes yes. If you spend more than £500/year on VATable business expenses and your customers are mostly VAT-registered businesses, voluntary registration can save you money.
What happens if I do not register when I should?
HMRC issues a notice requiring registration. Penalties range from 5% to 30% of the VAT you should have charged, plus backdated VAT liability and interest.
Written by Invosi Editorial · Tax & Compliance.