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 are frozen until 31 March 2024.

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 alone.
• 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