What is the threshold for compulsory VAT registration in the UK?

The threshold for compulsory VAT registration in the UK is £85,000 in taxable turnover. This means that businesses with taxable turnover exceeding this amount within a 12-month period must register for VAT with HM Revenue and Customs (HMRC). It is a vital understanding for businesses as crossing this threshold necessitates compliance with VAT regulations, including the need to charge VAT on goods and services sold and to submit regular VAT returns.

Staying below this threshold allows businesses to operate without the obligations that come with VAT registration, but many choose to register voluntarily even if they are under this limit to reclaim VAT on their purchases.

The other figures provided—£50,000, £70,000, and £100,000—do not reflect the current compulsory registration threshold set by HMRC and can lead to misguidance for those trying to understand VAT implications for their business operations.