What is the VAT registration threshold in the UK?

The VAT registration threshold in the UK is £85,000 in taxable turnover. This figure represents the annual turnover limit that businesses must not exceed before they are required to register for VAT. Once a business's taxable turnover exceeds this threshold, it must register with HM Revenue and Customs (HMRC), collect VAT on applicable sales, and meet ongoing compliance requirements related to VAT.

This threshold is updated periodically to reflect economic conditions, and the current figure set at £85,000 has been in place for several years, making it a key reference point for businesses considering their VAT obligations. Proper understanding of this threshold is crucial for businesses to avoid penalties for non-compliance and ensures that they manage their tax responsibilities effectively.