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VAT & Tax
8 min read
VAT Threshold Guide for UK Tradespeople in 2026
15 February 2026
Everything you need to know about the VAT threshold — when to register, how to track your turnover, and what happens when you cross it.
What the VAT Threshold Means
The VAT threshold is the annual taxable turnover limit where UK businesses must register for VAT. Cross it — and you have to charge VAT on your invoices.
For trade businesses, keeping an eye on turnover matters — quote volume and seasonal work can push you over faster than you expect.
When Registration Becomes Mandatory
Registration is required when taxable turnover exceeds the threshold over any rolling 12-month period. You can also be required to register if you expect to exceed it in the next 30 days — so planning ahead is important.
- Monitor your rolling 12-month turnover monthly — not just at year end
- Keep invoices and expenses categorised properly
- Think about your pricing strategy before crossing the threshold