Policy state

What is currently true about UK VAT

Every figure this site relies on, with its HMRC source and the date we last confirmed it. UK VAT rules shift — typically at the Budget — so freshness is the whole point. Build verified 13 Jun 2026.

Policy state · verified

VAT registration threshold: £90,000

VAT registration threshold (gov.uk/vat-registration) · effective 01 Apr 2024 · Last verified 13 Jun 2026

gov.uk/vat-registration/when-to-register

Policy state · verified

VAT deregistration threshold: £88,000

Cancelling VAT registration (gov.uk/vat-registration/cancel-registration) · Last verified 13 Jun 2026

gov.uk/vat-registration/cancel-registration

Policy state · verified

Standard rate of VAT: 20%

VAT rates (gov.uk/vat-rates) · Last verified 13 Jun 2026

gov.uk/vat-rates

Policy state · verified

Reduced rate of VAT: 5%

VAT rates (gov.uk/vat-rates) · Last verified 13 Jun 2026

gov.uk/vat-rates

Policy state · verified

Flat Rate Scheme join ceiling (turnover excl. VAT): £150,000

VAT Flat Rate Scheme — eligibility (gov.uk/vat-flat-rate-scheme) · Last verified 13 Jun 2026

gov.uk/vat-flat-rate-scheme/eligibility

Policy state · verified

Flat Rate Scheme leave ceiling (income incl. VAT): £230,000

VAT Flat Rate Scheme — eligibility (gov.uk/vat-flat-rate-scheme) · Last verified 13 Jun 2026

gov.uk/vat-flat-rate-scheme/eligibility

Policy state · verified

Limited-cost business flat rate: 16.5%

VAT Flat Rate Scheme — work out your flat rate (gov.uk/vat-flat-rate-scheme) · Last verified 13 Jun 2026

gov.uk/vat-flat-rate-scheme/work-out-your-flat-rate

Policy state · verified

Flat Rate Scheme first-year discount: 1%

VAT Flat Rate Scheme — first-year 1% discount (gov.uk/vat-flat-rate-scheme) · Last verified 13 Jun 2026

gov.uk/vat-flat-rate-scheme/work-out-your-flat-rate

Policy state · verified

Making Tax Digital for VAT — mandatory for all VAT-registered businesses: All registered businesses

Making Tax Digital for VAT (gov.uk/guidance) · all registered businesses since 01 Apr 2022 · Last verified 13 Jun 2026

gov.uk/guidance/check-when-businesses-must-follow-the-rules-for-making-tax-digital-for-vat

How we keep this fresh

Figures are reviewed monthly and re-checked against HMRC after each Spring and Autumn Budget. The Flat Rate Scheme sector table was last verified 13 Jun 2026. If you are reading this long after the last-verified dates above, confirm the current figures at gov.uk before acting — that is exactly why every claim carries its date.

Informational, not tax advice. HMRC primary sources are cited throughout and every figure carries a last-verified date. Your own VAT position depends on facts only you and HMRC hold. Verify with HMRC or a UK-credentialled accountant (ICAEW / ACCA / CIOT / ATT) before acting. We are not a firm of chartered accountants.

Independent ICAEW/ACCA review pending.