VAT registration (UK)
A business may have to register when taxable turnover exceeds the relevant threshold under the historic rolling-period or future-turnover tests, subject to exceptions and other registration rules. Eligible businesses may register voluntarily. For 1 April 2025 to 31 March 2026, the annual registration threshold was £90,000. Zero-rated taxable supplies count towards taxable turnover, unlike exempt supplies. Notification deadlines and effective dates depend on the test and the applicable law.
Worked example
In a 2025–26 exam scenario, a UK business’s taxable turnover over the relevant rolling 12 months first exceeds £90,000. It checks the required notification and effective registration dates under the applicable rules.
Common mistake
Using the 2020–21 £85,000 threshold in a 2025–26 computation, or excluding zero-rated taxable supplies from turnover.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | TX (UK) | Direct | June 2026–June 2027 |