Free tool

VAT Threshold Calculator UK 2025/26

Enter your last 12 months of revenue. FFCC forecasts exactly when you'll hit the £90,000 threshold — and what to do when you do.

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Key VAT facts for 2025/26

£90,000

2025/26 VAT registration threshold

30 days

Time to register after breaching the threshold

12 months

Rolling window HMRC uses (not tax year)

20%

Standard rate you'll need to add to invoices

Sample output

Illustrative output for a freelance consultant on £6,500/month.

VAT Threshold Forecast

Rolling 12-month total£78,000
Remaining headroom£12,000
Estimated threshold breach~1.8 months at current revenue

Action required: At your current monthly revenue of £6,500, you will likely breach the £90,000 threshold within 2 months. You must register within 30 days of the month-end in which you breach the threshold. Failure to register on time may result in a penalty surcharge. Consider registering now to avoid a rushed application. Source: VAT Notice 700/1, HMRC.

Common questions

When do I need to register for VAT?

You must register when your taxable turnover in any rolling 12-month period exceeds £90,000. You have 30 days from the end of the month in which you breached the threshold to register.

Is the VAT threshold based on profit or turnover?

It's based on VAT-taxable turnover — your gross revenue from VAT-taxable supplies, not your profit. Expenses do not reduce the figure HMRC uses to test registration.

Should I register for VAT voluntarily before £90,000?

Sometimes. If your clients are VAT-registered businesses, they can reclaim the VAT you charge, so it costs them nothing — and you can reclaim VAT on your own purchases. FFCC's forecaster highlights this breakeven point.

What is the Flat Rate Scheme and should I use it?

The Flat Rate Scheme lets you pay HMRC a fixed percentage of gross turnover (e.g., 14.5% for IT consultants) rather than accounting for VAT on every invoice. It can simplify administration and create a small profit margin in the first year.

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