What is the VAT threshold?
The VAT registration threshold is the level of taxable turnover where a UK business may need to register for VAT.
The current UK VAT registration threshold used by Invatax is £90,000.
This does not mean you only check your annual accounts or your tax year total. VAT registration is normally based on your rolling 12-month taxable turnover.
Taxable turnover usually includes
- standard-rated sales
- reduced-rated sales
- zero-rated sales
Some income may be treated differently
- exempt sales
- outside-scope income
- some grants or loans
- some overseas sales
- reverse charge sales
- one-off unusual income
If you are unsure whether something counts towards VAT taxable turnover, check with an accountant or HMRC before relying on the figure.
How does the rolling 12-month calculation work?
The rolling 12-month VAT calculation looks at the latest 12 months of taxable turnover.
It is not fixed to your accounting year, the tax year, or the calendar year.
Each month, you should look back over the most recent 12 months and add up taxable sales for that period.
For example, if you are reviewing May 2026, the rolling 12-month period may include June 2025 to May 2026.
Invatax helps by storing your monthly figures, calculating the latest rolling 12-month position, showing how close you are to the threshold, and warning you when the risk level changes.
Invatax does not make the final VAT registration decision for you.
Why am I receiving a VAT warning?
You may receive a VAT warning when your figures suggest your business is getting closer to the VAT registration threshold.
Invatax looks at your rolling 12-month taxable turnover, the current VAT threshold, how much room remains, recent turnover trends, sharp increases, and missing monthly figures.
A warning does not automatically mean you need to register for VAT. It means your figures need attention.
What to check next
- review the months included
- check whether income has been classified correctly
- update any missing turnover
- speak to your accountant
- check HMRC guidance
If Invatax says your figures may have exceeded the threshold, confirm the position with an accountant, tax adviser, or HMRC before acting.
How do I connect Xero?
Xero connection is available on the Connected plan.
- Log in to Invatax.
- Go to Settings.
- Find Turnover source.
- Choose Xero.
- Click Connect accounting app.
- Sign in to Xero.
- Choose the correct Xero organisation.
- Approve the connection.
- Return to Invatax.
Once connected, Invatax can sync sales figures from Xero. If syncing fails, you may need to reconnect Xero. Your existing Invatax turnover data should remain visible even if the connection needs attention.
Check that the connected Xero organisation is the correct business before relying on the figures.
How do I connect QuickBooks?
QuickBooks connection is available on the Connected plan.
- Log in to Invatax.
- Go to Settings.
- Find Turnover source.
- Choose QuickBooks.
- Click Connect accounting app.
- Sign in to QuickBooks.
- Choose the correct company.
- Approve the connection.
- Return to Invatax.
Once connected, Invatax can sync sales figures from QuickBooks. If syncing fails, you may need to reconnect QuickBooks. Your existing Invatax turnover data should remain visible even if the connection needs attention.
Check that the connected QuickBooks company is the correct business before relying on the figures.
How do I cancel my subscription?
You can manage your subscription through Stripe billing.
- Log in to Invatax.
- Go to Settings.
- Select Manage billing.
- Follow the Stripe billing portal instructions.
- Confirm the cancellation if you want to stop renewal.
What happens after cancellation depends on your Stripe subscription status and billing period. You may keep access until the end of the paid period or trial period, depending on how the subscription was cancelled.
Refunds are handled in line with the Invatax Terms & Conditions and applicable law.
How do I export my data?
Invatax includes data export tools so you can download information linked to your account.
- Log in to Invatax.
- Go to Settings.
- Open Privacy & Data.
- Select Export My Data.
- Download the export file.
Your export may include business profile details, turnover entries, VAT threshold calculation snapshots, subscription/account data where appropriate, and audit log entries linked to your account.
For security reasons, exports should not include sensitive secrets such as OAuth tokens, Stripe secret data, or private API keys.
How do VAT registration deadlines work?
VAT registration deadlines can depend on why and when the threshold was exceeded.
In many cases, if your taxable turnover goes over the VAT registration threshold over a rolling 12-month period, you may need to notify HMRC within a set deadline and register from the correct date.
Invatax may show the month where your figures appear to reach or exceed the threshold, the rolling turnover at that point, the current VAT threshold, an estimated notification deadline, and an estimated registration date.
These dates are guidance only. Confirm the correct registration deadline and effective registration date with your accountant, a VAT adviser, or HMRC guidance.
This is especially important if your business has exempt sales, overseas sales, reverse charge sales, unusual one-off income, more than one business or entity, or mixed taxable and exempt supplies.
