Headline numbers (2024/25)
| Threshold | Amount |
|---|---|
| Registration threshold | £90,000 |
| Deregistration threshold | £88,000 |
| Cash Accounting Scheme entry | £1.35 million |
| Cash Accounting Scheme exit | £1.6 million |
| Flat Rate Scheme entry | £150,000 (taxable turnover, ex-VAT) |
| Flat Rate Scheme exit | £230,000 (total income, inc-VAT) |
| Annual Accounting entry | £1.35 million |
| Annual Accounting exit | £1.6 million |
How "turnover" is measured
Always use VAT-taxable turnover on a rolling 12-month basis — not your accounting year. Exclude exempt supplies, capital asset sales and intercompany recharges.
Deregistration
If your VAT-taxable turnover drops below £88,000 and you expect it to stay there, you can deregister. Watch out for a final-return VAT charge on stock and assets you keep.
Voluntary registration
You can register before hitting £90,000 if most of your customers are VAT-registered businesses and you regularly incur input VAT.
Approaching the threshold? Talk to us before you cross it — timing your registration can save thousands.