Tax year 2026/27Last updated 8 October 2026
VAT rates and thresholds
VAT rates for goods and services, and the registration thresholds that decide when a business must register for VAT. From 1 April 2026 the registration threshold remains at £90,000.
VAT rates
| Rate | Applies to | Examples |
|---|---|---|
| Standard 20% | Most goods and services | Most purchases, professional services |
| Reduced 5% | Specific items | Domestic energy, some children's car seats |
| Zero 0% | Specific items | Most food, books, children's clothing |
| Exempt | Specific supplies | Some financial services, education, most property rents |
Registration thresholds
| Threshold | Amount |
|---|---|
| VAT registration (taxable turnover, rolling 12 months) | £90,000 |
| Deregistration | £88,000 |
| Flat Rate Scheme join / leave | £150,000 / £230,000 |
- Businesses below the threshold can register voluntarily, sometimes worthwhile when customers are VAT-registered.
- Registration is measured on rolling 12-month taxable turnover, not calendar or tax year.
Common questions
What is the VAT registration threshold?
£90,000 of taxable turnover in any rolling 12-month period. Deregistration applies once turnover falls to £88,000 or below.
Did the Autumn Budget 2025 change the VAT threshold?
No. From 1 April 2026 the registration threshold remains £90,000 and the deregistration threshold £88,000.
Figures from VAT rates . For guidance only, not tax advice. Always check current HMRC guidance.
Manage your own figures, not just read about them
MyTaxFiling keeps your income and expenses organised through the year, so your own tax position is clear well before filing time.