VAT Registration Checker
Are you approaching the VAT threshold? See how close you are to mandatory registration, what it would cost you, and whether the Flat Rate Scheme could save you money.
Tax year 2026/27· Threshold: £90,000 (from April 2025)
Your details
Enter your current revenue figures. Results update instantly.
Average monthly turnover
Costs that include VAT (software, supplies, etc.)
Rolling 12-month total turnover
Used for Flat Rate Scheme percentage
Affects whether voluntary registration makes sense
VAT threshold status
£60,000 remaining before the £90,000 threshold.
At £6,000/month, you'll reach the threshold in approximately 10 months.
33.3%
Voluntary registration could benefit you
Most of your clients are VAT-registered businesses who can reclaim the VAT you charge — so it costs them nothing. You can reclaim VAT on your own expenses, and it signals a more established business.
Standard VAT scheme
Effective cost: 18.6% of your revenue. Requires tracking VAT on every invoice and expense.
Flat Rate Scheme (14.5%)
Saves £872/year vs standard scheme, and much simpler bookkeeping.
Rate shown for: Computer and IT consultancy. You can't reclaim VAT on expenses under this scheme (except capital assets over £2,000).
Impact on your pricing
Add VAT on top of current prices
£86,400/year
Charge £7,200/month instead of £6,000. Your B2B clients reclaim the VAT, so it costs them nothing extra. Best option.
Keep prices the same (absorb VAT)
£60,000/year
Your real revenue drops to £5,000/month — a £1,000/month hit.
Save your results
Email yourself a copy of these calculations to refer back to later.
How this works
- VAT registration threshold is £90,000 for 2026/27 (increased from £85,000 in April 2024).
- You must register if your rolling 12-month turnover exceeds the threshold, or you expect it to in the next 30 days alone.
- The Flat Rate Scheme lets you pay a fixed % of gross turnover instead of tracking VAT on every expense. Simpler but not always cheaper.
- First-year FRS discount: you get 1% off the flat rate in your first year of VAT registration (not shown here).
- Once registered, you can deregister if turnover drops below £88,000.
- Making Tax Digital (MTD) requires digital VAT records and online filing via compatible software.
VAT for freelancers: what you need to know
When must you register?
You must register for VAT if your taxable turnover in the last 12 months exceeds £90,000, or if you expect it to exceed £90,000 in the next 30 days alone. The threshold increased from £85,000 in April 2025.
Should you register voluntarily?
Some freelancers register even below the threshold. This makes sense if most of your clients are VAT-registered businesses (they reclaim the VAT, so it costs them nothing) and you have significant VAT-able expenses to reclaim. It also signals to clients that your business is established.
Standard vs Flat Rate Scheme
The standard scheme means charging 20% VAT on invoices, reclaiming VAT on expenses, and paying the difference to HMRC quarterly. The Flat Rate Scheme simplifies this — you pay a fixed percentage of your gross turnover and don't reclaim VAT on expenses. It's simpler but whether it's cheaper depends on your trade category and expense level.
Key deadlines
- You must notify HMRC within 30 days of the end of the month you exceeded the threshold
- VAT returns are due quarterly, with payment due 1 month and 7 days after the period end
- Making Tax Digital (MTD) requires digital VAT records and online filing
This tool provides estimates for guidance only. VAT rules have specific nuances around the date of supply, cash vs accrual accounting, and exempt supplies. Always consult a qualified accountant for VAT advice.