VAT threshold 2022


The VAT threshold for 2022 is £85,000.

This means that if your taxable turnover is more than £85,000 in the previous 12 months, you may need to register for VAT.


VAT threshold 2022

The VAT rules are pretty complex. Not all sales count towards the VAT registration threshold, and in certain circumstances, some costs actually count towards the registration threshold! (See reverse charge VAT for further details of expenses that count towards the registration threshold).

It’s best to speak to your accountant to see how the rules apply to you specifically.


What is the VAT threshold in 2022 and later?


The VAT registration and deregistration thresholds will not change for 2 years from 1 April 2022.

This means that the taxable turnover threshold (which determines whether a person must be registered for VAT) will remain at £85,000 until 31 March 2024.


More information about VAT


HMRC have some fantastic guides to VAT on their website. If you’d like to know the basics, here are some useful links:


Businesses and charging VAT – how VAT works

The 3 main rates of VAT

What you must do when charging VAT

How to calculate VAT inclusive and exclusive prices

When not to charge VAT

VAT on returned goods

VAT on discounts and free gifts


If you’d like to learn about VAT in more detail, then check out VAT guide (VAT Notice 700). This is HMRC’s guide to VAT rules and procedures.

For more details about the VAT threshold, checkout the HMRC site, or this site for more details.

If you need and accountant in Gloucestershire or Cheltenham, please contact us.


As always, we issue a disclaimer about the information on this page and the rest of the website. The information is intended for education, and no responsibility can be accepted if you act on the information. We try to keep the pages up-to-date, but tax laws change often, and this may not always be possible.

The best thing to do, is to use these pages as background information, then talk to your accountant and ask them to provide advice specific to your circumstances.