VAT Registration Calculator UK 2026/27
If your taxable turnover exceeds the VAT registration threshold over any rolling 12-month period, you must register for VAT. But should you register voluntarily even if you are below the threshold? And which scheme is best — standard rate or flat rate? This calculator helps you work through the numbers.
How to use: Enter your annual turnover and costs. The calculator will tell you whether you need to register, compare the standard and flat rate schemes, and show the net impact on your cash flow.
Understanding your results
The VAT registration threshold for 2026/27 is £90,000. This is measured on a rolling 12-month basis — not your financial year. If your taxable turnover exceeds this amount in any 12-month period, you must register within 30 days. You can also register voluntarily below the threshold, which allows you to reclaim VAT on your business purchases.
The flat rate scheme simplifies VAT by applying a fixed percentage to your gross turnover instead of tracking VAT on every individual purchase. It suits businesses with low costs but can be less favourable for businesses that spend heavily on VAT-rated supplies. The calculator compares both approaches so you can see which saves you more.
Frequently asked questions
What is the VAT registration threshold for 2026/27?
£90,000 in taxable turnover over any rolling 12-month period. You must also register if you expect your turnover to exceed £90,000 in the next 30 days alone.
Should I register for VAT voluntarily?
If your customers are VAT-registered businesses, voluntary registration is often beneficial because they can reclaim the VAT you charge and you can reclaim VAT on your purchases. If you sell mainly to consumers who cannot reclaim VAT, registration effectively makes your prices 20% higher — unless you absorb the cost, which reduces your margin.
What is the difference between standard rate and flat rate VAT?
Standard rate VAT means you charge 20% on sales and reclaim VAT on purchases, paying the difference to HMRC. The flat rate scheme charges a fixed percentage (which varies by industry) on your gross turnover, with no reclaiming of input VAT except on capital goods over £2,000. The flat rate scheme is simpler but not always cheaper.
Related tools
Need help deciding whether to register for VAT?
We handle VAT registration, returns and scheme selection for our clients. Book a free discovery call to discuss your situation.
Book a free discovery callHMRC rates for 2026/27. VAT registration threshold £90,000. Flat rate percentages from HMRC. For guidance only — does not constitute tax advice. Grosvenor Solutions is a trading name of Imperial Consulting Limited.