2026/27
VAT
| Band | Rate | Notes |
|---|---|---|
| Over £0 | 20% | Standard |
| Over £0 | 5% | Reduced |
| Over £0 | 0% | Zero |
- Registration threshold£90,000
- Deregistration threshold£88,000
2025/26
VAT
| Band | Rate |
|---|---|
| Over £0 | 20% |
| Over £0 | 5% |
| Over £0 | 0% |
- Registration threshold£90,000
VAT rates and registration
VAT is charged on most goods and services at the standard rate, with reduced and zero rates for specific items. Businesses must register once taxable turnover passes the registration threshold, and can register voluntarily below it. Registered businesses charge VAT, reclaim it on eligible purchases and file returns under Making Tax Digital.
Choosing the right scheme (standard, flat rate, cash or annual accounting) can save time and money. Our VAT service handles registration, scheme advice and returns.
Frequently asked
When must I register for VAT?+
Once your VAT-taxable turnover exceeds the registration threshold in any rolling 12-month period, or if you expect to exceed it in the next 30 days. The current threshold is shown above.
What is the Flat Rate Scheme?+
A simplified scheme where you pay a fixed percentage of turnover instead of tracking VAT on every purchase. It suits some small businesses — we can check if it is right for you.