What is the VAT registration threshold?

It is mandatory to register for VAT with HMRC if your business’ taxable turnover is more than the VAT registration threshold.

The VAT registration threshold is currently £90,000 (2026/27).If your turnover exceeds £90,000 or is due to exceed £90,000 in the next 30 days, then you must register for VAT. 

What is Making Tax Digital for VAT? 

Making Tax Digital (MTD) for VAT is part of HMRC’s digitisation agenda to make businesses keep digital bookkeeping records and use systems which can communicate with HMRC systems online or ‘in the cloud’. 

All businesses have been required to comply with MTD for VAT since 1st April 2022 if they are VAT-registered and have sales of more than £90,000.If your business is already using MTD-compliant software, you should not notice much difference to how you communicate with HMRC. However, if your business is still using a cashbook, spreadsheets or non-MTD-compliant software, you will almost certainly need to change your systems. 

It is no longer possible to key-in your VAT return figures directly into HMRC’s website. Instead, you must transmit VAT return figures via MTD-compatible bookkeeping software. 

TaxAssist Accountants partners with several leading MTD-compatible software providers and can talk you through your options for VAT returns. Call us on 01380 829 888 or use our online contact form. 

Last updated 17 Jul 2026 | First published 2 Mar 2018

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This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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