Certain thresholds must be reached for either the registration or deregistration of VAT.
VAT registration and deregistration thresholds
|
From 1 April 2024 £ |
From 1 April 2017 £ |
From 1 April 2016 £ |
From 1 April 2015 £ |
From 1 April 2014 £ |
From 1 April 2013 £ |
|
|
Registration threshold |
90,000 |
85,000 |
83,000 |
82,000 |
81,000 |
79,000 |
|
Deregistration threshold |
88,000 |
83,000 |
81,000 |
80,000 |
79,000 |
77,000 |
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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