Rolling VAT Registration Threshold: Understanding the 12-Month Test

The compulsory VAT registration threshold is £90,000 of taxable turnover.
The test is rolling: businesses must check turnover at the end of each month based on the previous 12 months, not just the accounting year.
There is also a separate test if turnover is expected to exceed £90,000 in the next 30 days alone.
It is best to include this calculation in monthly or quarterly management reporting to avoid late VAT registration issues.

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.