VAT THRESHOLDS: This information is important to determine whether you – or your business – need to become VAT Registered.
You can also find information about the VAT Flat Rate Scheme, the Annual Accounting Scheme, and the Cash Accounting Scheme.
There has been a steady increase in VAT thresholds over recent years. The VAT threshold for registration was £83,000 for the 2016/17 tax year. April 2017 saw another small increase.
The VAT threshold currently stands at £85,000 for 2022/23 tax year in the United Kingdom.
You must register with HMRC if your VATable turnover trips the threshold for Value Added Tax. Remember, these sales tax thresholds operate on a rolling 12-month period.
The VAT turnover threshold UK is not a fixed period (like the UK tax year). That means you need to assess your business sales turnover on a month by month basis.
Note: Late registration can result in a financial penalty. The severity depends how late, and how much, you owe.
VAT Threshold 2022/23
The tables show the thresholds for registration and the margins to join one of the VAT accounting schemes.
| VAT Registration Circumstance | 2022 VAT Threshold |
|---|---|
| VAT Registration required | Taxable turnover more than £85,000 |
| Registration for distance selling into the UK | Taxable turnover more than £70,000 |
| Registration for bringing goods into the UK from EU | Taxable turnover more than £85,000 |
| Deregistration Threshold | Taxable turnover less than £83,000 |
| Completing simplified EC Sales List | £106,500 or less and supplies to EU countries of £11,000 or less |
VAT Accounting Scheme Thresholds
| VAT Accounting Scheme | Threshold to Join Scheme | Threshold to Leave Scheme |
|---|---|---|
| Flat Rate Scheme | £150,000 or less | More than £230,000 |
| Cash Accounting Scheme | £1.35 million or less | More than £1.6 million |
| Annual Accounting Scheme | £1.35 million or less | More than £1.6 million |
Note: The VAT taxable turnover amounts to the total value of everything you sell or supply that is not exempt.
VAT Registration Thresholds for Previous Tax Years
The government has references on historical information about VAT registration thresholds. This is the best place to check whether you should have been registered for previous tax years.