Pricing and business
VAT registration threshold check
- where
- headroom below the threshold (£)
- VAT registration threshold (£)
- taxable turnover over the last 12 months (£)
- share of the threshold used (%)
Explain this equation
Shows how close your turnover is to the VAT registration threshold. Use it monthly once business picks up.
T is your taxable turnover for the last 12 months, counting everything you invoiced for labour and materials, not profit. thr is the registration threshold, £90,000. Headroom is what is left before you must register.
The test is a rolling 12 months, not the tax year, so each month you drop the oldest month and add the newest. Over the threshold, you must tell HMRC within 30 days of the end of that month.
Sense check: £75,000 turnover is 83% of the threshold, leaving £15,000. One £20,000 job on top would take you over.
Watch out: you must also register if you expect to exceed the threshold in the next 30 days alone, for example from one large contract.
Compares your rolling 12-month taxable turnover with the VAT registration threshold so you can see how close you are.
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). You must also register if you expect turnover in the next 30 days alone to exceed the threshold. Turnover means sales (labour and materials you charge for), not profit.
Common mistake
Checking only at the end of the tax year. The test is any rolling 12 months, so check every month.
Limits
Registration test only. Voluntary registration, the Flat Rate Scheme and deregistration (£88,000) are not covered.
Sources
Results are calculations from the published methods and manufacturer figures shown, and depend on the data you enter. Always follow the tile, adhesive and grout manufacturers’ instructions, BS 5385 and the Tile Association guidance. Coverage rates vary by product and substrate. Check prices and VAT rules with your own records and HMRC.