Running the business
VAT registration threshold headroom
- where
- headroom below the threshold (£)
- VAT registration threshold (£)
- taxable turnover in the last 12 months (£)
- turnover as a share of the threshold (%)
Explain this equation
Shows how close your rolling 12-month turnover is to the VAT registration threshold, so you are not caught out.
T12 is your total taxable sales over the last 12 months, including materials you charge for. Th is the threshold, £90,000. H is the gap left and p how far along you are as a percentage.
It is a simple difference and ratio. The test is rolling, so the 12 months move forward every month.
Sense check: £82,000 of turnover leaves £8,000 headroom, 91% of the threshold. Over £90,000 the headroom goes negative and you must register.
Watch out: you must also register if you expect to go over the threshold in the next 30 days alone.
Shows how close your rolling 12-month turnover is to the VAT registration threshold.
Enter your values to see the result.
Good to know
The threshold is £90,000 of taxable turnover in any rolling 12-month period, not the tax year (GOV.UK, unchanged since 1 April 2024 and current as at November 2026). You must also register straight away if you expect the next 30 days alone to take you over. Turnover is total sales including the paint and materials you charge for, not profit.
Common mistake
Checking only at the tax year end. The test is rolling: add up the last 12 months at the end of every month.
Limits
Simple comparison. Does not cover exempt supplies, deregistration or voluntary registration. Re-check the threshold on GOV.UK if it changes.
Sources
Results are calculations from the published methods and figures shown, and depend on the data you enter. Coverage depends on the product, surface and application. Always follow the paint and wallcovering manufacturers’ data sheets and BS 6150 / BS 8000-12. Check prices and VAT with your own records and HMRC.