VAT Threshold

The VAT threshold is the annual turnover level above which a business must register for VAT with HMRC. The threshold is currently £90,000 (from April 2024). Once registered, businesses must charge VAT at the appropriate rate (standard 20%, reduced 5%, or zero) on taxable supplies, file periodic VAT returns, and pay any VAT due. Businesses below the threshold may register voluntarily to reclaim input tax.