Certain thresholds must be reached for either the registration or deregistration of VAT.

VAT registration and deregistration thresholds

 

From 1 April 2017

£

From 1 April 2016

£

From 1 April 2015

£

From 1 April 2014

£

From 1 April 2013

£

Registration threshold

85,000*

83,000

82,000

81,000

79,000

Deregistration threshold

83,000*

81,000

 80,000

79,000

77,000

 

 

 

 

 

 



*At Budget 2021, the Chancellor announced that the VAT registration threshold and VAT deregistration threshold were frozen until 31 March 2024. These freezes were then extended by Autumn Statement 2022 to 31 March 2026. 

Registration threshold

VAT registration is compulsory if:

  • Taxable turnover for VAT purposes in the previous 12 months exceeds the threshold.
  • Taxable turnover is expected to go over the threshold in the next 30 days.
  • A VAT-registered business is taken over as a Going concern.

Deregistration threshold

If VAT taxable turnover for the year is less than or equal to the deregistration threshold or it is expected to fall below it in the next 12 months, a business has the option of Deregistering if it wants to.

VAT scheme thresholds

Scheme Turnover to join Turnover to leave
Flat Rate* Up to £150,000 Over £230,000
Cash Accounting Up to £1.35 million Over £1.6 million
Annual Accounting Up to £1.35 million Over £1.6 million

*The same thresholds apply for the Flat rate scheme for farmers


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