VAT registration is not triggered by a year-end figure alone. A small business needs to watch two different tests: taxable turnover over the previous 12 months, and an expectation that taxable turnover will exceed the threshold in the next 30 days. Those tests have different dates and can produce different registration timing.
At the 2 November 2026 review date, GOV.UK states a £90,000 threshold. Thresholds and circumstances can change, so use current HMRC guidance and obtain advice where the figures, supply type or timing are uncertain.
Test 1: the rolling 12-month check
This is not a fixed accounting year. Each month, look back over the immediately preceding 12 months of taxable turnover. If that running total first exceeds the applicable threshold, HMRC states that the registration application is due within 30 days of the end of the month in which the threshold was exceeded, with the effective registration date normally the first day of the second month after that month.
The VAT Registration Threshold Tracker is designed to make the rolling history visible. It is an internal planning aid, not an HMRC filing or a conclusion about which sales are taxable.
Test 2: the next-30-days expectation
If you realise that taxable turnover will exceed the applicable threshold in the next 30 days, do not wait for cash to arrive or the rolling history to catch up. GOV.UK states that the application is due by the end of that 30-day period and the effective date is the date you realised the threshold would be exceeded.
For a small-business owner, a signed contract, a large invoice/application or a programmed phase can make this test important. The key is the expected taxable turnover, not simply whether the job feels “big”.
What to keep with the review
- A rolling list of supplies and why they are treated as taxable or excluded.
- The date each month was checked and the running 12-month total.
- Evidence supporting a next-30-days expectation, such as an agreed job, programme or accepted quotation.
- The date the business first became aware of the relevant fact.
- Questions that require accountant or VAT-specialist input before a decision is made.
Do not use turnover alone as a pricing decision
Registration can affect customer conversations, invoice setup, purchases and cash planning. A voluntary-registration question is different from the mandatory tests above. Consider it with an adviser using the business's mix of customers, costs, supplies and plans rather than assuming that registration is always better or always worse.
Related FoxSums resources
- VAT Registration Threshold Tracker
- VAT Registration: Voluntary or Mandatory?
- VAT on Construction Work: Rate Decision Guide
Next step
Use the VAT tracker to organise the turnover evidence, then check the current official guidance if the threshold is close.
Important
General information only. Check the facts and current official guidance for the business’s circumstances.
Sources and review
- Evidence check date: 2 November 2026.
- GOV.UK - when to register for VAT
- GOV.UK - VAT thresholds
- VAT Notice 700/1 supplement