Act on the result
Confirm the selected scope and effective date with the linked authority before changing registration treatment or customer price.
Educational only: Business decision support, not accounting, tax or legal advice.
Privacy: No account is required. Tool inputs and results stay in this browser. Anonymous categorical usage analytics send only governed page, tool, cluster and action identifiers; tool inputs and results are never sent. Error monitoring is disabled. Optional saved state stays only on this device.
Update policy: Reviewed when formulas or official dependencies change.
Scope: UK small-business planning using your own assumptions.
What this decision tool helps you decide
Best for
Businesses reviewing a bounded UK VAT registration and price scenario against official supported rules.
Outputs
Threshold status, customer-facing tax price, retained revenue and margin, plus explicit unsupported-scope and authority-check states.
Start here
Confirm the supported jurisdiction, supply/customer class, registration state and effective date before entering price, cost and turnover.
Use a different tool when: Do not use this to set a retained margin across VAT-inclusive and VAT-exclusive price scenarios; use UK VAT-aware Pricing Planner for that decision. Use this tool to review a supported UK VAT registration scenario and the resulting customer price and retained margin.
Price & margin
UK VAT Registration Decision Tool: threshold status
Threshold status, customer-facing tax price, retained revenue and margin, plus explicit unsupported-scope and authority-check states.
VAT-aware price and registration records
Set a retained VAT-aware price and enter the exact official turnover records. Unsupported policy branches stop instead of guessing.
Your numbers stay in this browser
Enter per-unit cost on the selected VAT basis.
Gross profit share retained before VAT.
Special Northern Ireland cases fail closed.
Exempt and unknown supplies fail closed.
Optional comparisonAdd a comparison value only when it helps your decision.
Optional comparison price on the selected VAT basis.
Market policy, turnover records and authority confirmationsOpen the assumptions you are less likely to change on every comparison.
Confirm whether the entered cost includes tax.
Enter turnover for this exact measured period.
Enter turnover for this separate measured period.
Choose the confirmed status; uncertainty keeps an authority warning visible.
Choose No when tax paid remains in effective cost.
Required for recoverable VAT in a tax-inclusive cost; separate from output rate.
Controls whether displayed price adds tax to retained revenue.
Confirm that the customer and transaction are inside the displayed domestic supply workflow.
Confirm that the reviewed rate and registration rules apply to the transaction and turnover periods.
The amounts must use the authority-defined taxable or GST turnover scope.
Review status
Below the selected turnover threshold
- Required displayed price
- ยฃ120.00
- Required price excluding VAT
- ยฃ100.00
- VAT component
- ยฃ20.00
- Effective cost
- ยฃ60.00
- Gross profit per unit
- ยฃ40.00
- Retained gross margin
- 40%
- Change from current displayed price
- ยฃ20.00
- Selected VAT rate
- 20%
- Selected registration threshold
- ยฃ90,000.00
- Taxable turnover in the prior 12 months
- ยฃ0.00
- Taxable turnover expected in the next 30 days
- ยฃ0.00
- Highest entered turnover
- ยฃ0.00
- Remaining to threshold
- ยฃ90,000.00
This workflow is a source-versioned price and threshold review, not a registration, taxability, place-of-supply or filing determination. Confirm the outcome with the relevant authority.
Policy version 2026-07-16. Open the official source.
Registration review
Compare current threshold headroom with a 10% increase in prospective turnover.
ScenarioResultDifference
Entered turnover recordsยฃ90,000.00Baseline
Prospective turnover +10%ยฃ90,000.00ยฃ0.00
Save these results, change an input, then compare the updated figures with this baseline.
The baseline is temporary in this tab and is not added to shared scenario links or generated reports.
Calculation details
View calculation detailsView the formulas and inputs used for these results.
Required displayed price
Effective cost
recoverable: tax-inclusive cost รท (1 + input rate), tax-exclusive cost unchanged; non-recoverable: tax-inclusive cost unchanged, tax-exclusive cost ร (1 + input rate)60 GBPRequired price excluding VAT
effective cost รท (1 โ target retained margin)100 GBPRequired displayed price
registered and tax-inclusive display โ retained price ร (1 + entered VAT rate); otherwise retained price120 GBPResultยฃ120.00
Uses Standard-rated โ 20% (Rate source version 2026-07-16), source version 2026-07-16; threshold status uses Threshold source version 2026-07-16, Prior 12 months taxable turnover and Expected next 30 days taxable turnover, source version 2026-07-16. Retained revenue excludes VAT. The engine retains full precision; currency displays to two decimal places.
UK VAT Registration Decision Tool formulas โInputs used by these formula steps
- Effective costCost Exclusive
- 60
- Effective costTax Rate
- 0.2
- Effective costInput Tax Rate
- 0.2
- Effective costCost Tax Basis
- Tax-exclusive cost
- Effective costInput Tax Recoverable
- Yes
- Effective costRegistration State
- Registered
- Required price excluding VATEffective Cost
- 60
- Required price excluding VATTarget Margin
- 0.4
- Required displayed priceRequired Price Exclusive
- 100
- Required displayed priceTax Rate
- 0.2
- Required displayed priceDisplayed Price Includes Tax
- Yes
Required price excluding VAT
Effective cost
recoverable: tax-inclusive cost รท (1 + input rate), tax-exclusive cost unchanged; non-recoverable: tax-inclusive cost unchanged, tax-exclusive cost ร (1 + input rate)60 GBPRequired price excluding VAT
effective cost รท (1 โ target retained margin)100 GBPResultยฃ100.00
Uses Standard-rated โ 20% (Rate source version 2026-07-16), source version 2026-07-16; threshold status uses Threshold source version 2026-07-16, Prior 12 months taxable turnover and Expected next 30 days taxable turnover, source version 2026-07-16. Retained revenue excludes VAT. The engine retains full precision; currency displays to two decimal places.
UK VAT Registration Decision Tool formulas โInputs used by these formula steps
- Effective costCost Exclusive
- 60
- Effective costTax Rate
- 0.2
- Effective costInput Tax Rate
- 0.2
- Effective costCost Tax Basis
- Tax-exclusive cost
- Effective costInput Tax Recoverable
- Yes
- Effective costRegistration State
- Registered
- Required price excluding VATEffective Cost
- 60
- Required price excluding VATTarget Margin
- 0.4
VAT component
Required price excluding VAT
effective cost รท (1 โ target retained margin)100 GBPRequired displayed price
registered and tax-inclusive display โ retained price ร (1 + entered VAT rate); otherwise retained price120 GBPVAT component
displayed price โ retained price20 GBPResultยฃ20.00
Uses Standard-rated โ 20% (Rate source version 2026-07-16), source version 2026-07-16; threshold status uses Threshold source version 2026-07-16, Prior 12 months taxable turnover and Expected next 30 days taxable turnover, source version 2026-07-16. Retained revenue excludes VAT. The engine retains full precision; currency displays to two decimal places.
UK VAT Registration Decision Tool formulas โInputs used by these formula steps
- Required price excluding VATEffective Cost
- 60
- Required price excluding VATTarget Margin
- 0.4
- Required displayed priceRequired Price Exclusive
- 100
- Required displayed priceTax Rate
- 0.2
- Required displayed priceDisplayed Price Includes Tax
- Yes
- VAT componentRequired Displayed Price
- 120
- VAT componentRequired Price Exclusive
- 100
Effective cost
Effective cost
recoverable: tax-inclusive cost รท (1 + input rate), tax-exclusive cost unchanged; non-recoverable: tax-inclusive cost unchanged, tax-exclusive cost ร (1 + input rate)60 GBPResultยฃ60.00
Uses Standard-rated โ 20% (Rate source version 2026-07-16), source version 2026-07-16; threshold status uses Threshold source version 2026-07-16, Prior 12 months taxable turnover and Expected next 30 days taxable turnover, source version 2026-07-16. Retained revenue excludes VAT. The engine retains full precision; currency displays to two decimal places.
UK VAT Registration Decision Tool formulas โInputs used by these formula steps
- Effective costCost Exclusive
- 60
- Effective costTax Rate
- 0.2
- Effective costInput Tax Rate
- 0.2
- Effective costCost Tax Basis
- Tax-exclusive cost
- Effective costInput Tax Recoverable
- Yes
- Effective costRegistration State
- Registered
Gross profit per unit
Effective cost
recoverable: tax-inclusive cost รท (1 + input rate), tax-exclusive cost unchanged; non-recoverable: tax-inclusive cost unchanged, tax-exclusive cost ร (1 + input rate)60 GBPRequired price excluding VAT
effective cost รท (1 โ target retained margin)100 GBPGross profit per unit
retained revenue โ effective cost40 GBPResultยฃ40.00
Uses Standard-rated โ 20% (Rate source version 2026-07-16), source version 2026-07-16; threshold status uses Threshold source version 2026-07-16, Prior 12 months taxable turnover and Expected next 30 days taxable turnover, source version 2026-07-16. Retained revenue excludes VAT. The engine retains full precision; currency displays to two decimal places.
UK VAT Registration Decision Tool formulas โInputs used by these formula steps
- Effective costCost Exclusive
- 60
- Effective costTax Rate
- 0.2
- Effective costInput Tax Rate
- 0.2
- Effective costCost Tax Basis
- Tax-exclusive cost
- Effective costInput Tax Recoverable
- Yes
- Effective costRegistration State
- Registered
- Required price excluding VATEffective Cost
- 60
- Required price excluding VATTarget Margin
- 0.4
- Gross profit per unitRetained Revenue
- 100
- Gross profit per unitEffective Cost
- 60
Retained gross margin
Gross profit per unit
retained revenue โ effective cost40 GBPRetained gross margin
gross profit รท retained revenue40%Result40.0%
Uses Standard-rated โ 20% (Rate source version 2026-07-16), source version 2026-07-16; threshold status uses Threshold source version 2026-07-16, Prior 12 months taxable turnover and Expected next 30 days taxable turnover, source version 2026-07-16. Retained revenue excludes VAT. The engine retains full precision; currency displays to two decimal places.
UK VAT Registration Decision Tool formulas โInputs used by these formula steps
- Gross profit per unitRetained Revenue
- 100
- Gross profit per unitEffective Cost
- 60
- Retained gross marginGross Profit
- 40
- Retained gross marginRetained Revenue
- 100
Change from current displayed price
Required displayed price
registered and tax-inclusive display โ retained price ร (1 + entered VAT rate); otherwise retained price120 GBPChange from current displayed price
required displayed price โ current displayed price20 GBPResultยฃ20.00
Uses Standard-rated โ 20% (Rate source version 2026-07-16), source version 2026-07-16; threshold status uses Threshold source version 2026-07-16, Prior 12 months taxable turnover and Expected next 30 days taxable turnover, source version 2026-07-16. Retained revenue excludes VAT. The engine retains full precision; currency displays to two decimal places.
UK VAT Registration Decision Tool formulas โInputs used by these formula steps
- Required displayed priceRequired Price Exclusive
- 100
- Required displayed priceTax Rate
- 0.2
- Required displayed priceDisplayed Price Includes Tax
- Yes
- Change from current displayed priceRequired Displayed Price
- 120
- Change from current displayed priceCurrent Displayed Price
- 100
Selected VAT rate
Selected VAT rate
official policy rate selected by confirmed jurisdiction, supply class and effective period0.2Result20.0%
Uses Standard-rated โ 20% (Rate source version 2026-07-16), source version 2026-07-16; threshold status uses Threshold source version 2026-07-16, Prior 12 months taxable turnover and Expected next 30 days taxable turnover, source version 2026-07-16. Retained revenue excludes VAT. The engine retains full precision; currency displays to two decimal places.
UK VAT Registration Decision Tool formulas โInputs used by these formula steps
- Selected VAT rateJurisdiction
- Great Britain
- Selected VAT rateSupply Class
- Standard-rated โ 20%
- Selected VAT rateEffective Period
- โ
- Selected VAT ratePolicy Rate Row
- Standard-rated โ 20%
- Selected VAT rateEffective Date
- Rate source version 2026-07-16
- Selected VAT rateSource Version
- 2026-07-16
Registration review status
Registration review status
apply the exact official comparison operator to each supported period plus any explicit supported non-turnover triggerBelow the selected turnover thresholdResultBelow the selected turnover threshold
Uses policy dependency hmrc-vat-registration-threshold-gb version 2026-07-16 and the separately bound rate/classification policy in the same market workflow. The engine compares raw amounts; display rounding never feeds the decision.
UK VAT Registration Decision Tool formulas โInputs used by these formula steps
- Registration review statusPrimary Turnover
- 0
- Registration review statusSecondary Turnover
- 0
- Registration review statusThreshold
- 90,000
Selected threshold
Selected registration threshold
official threshold for the confirmed supported business class90,000 GBPResultยฃ90,000.00
Uses policy dependency hmrc-vat-registration-threshold-gb version 2026-07-16 and the separately bound rate/classification policy in the same market workflow. The engine compares raw amounts; display rounding never feeds the decision.
UK VAT Registration Decision Tool formulas โInputs used by these formula steps
- Selected registration thresholdDependency Id
- hmrc-vat-registration-threshold-gb
- Selected registration thresholdPolicy Version
- 2026-07-16
Taxable turnover in the prior 12 months
Official turnover period views
keep the official retrospective and prospective turnover views separate0 GBPResultยฃ0.00
Uses policy dependency hmrc-vat-registration-threshold-gb version 2026-07-16 and the separately bound rate/classification policy in the same market workflow. The engine compares raw amounts; display rounding never feeds the decision.
UK VAT Registration Decision Tool formulas โInputs used by these formula steps
- Official turnover period viewsPrimary Turnover
- 0
- Official turnover period viewsSecondary Turnover
- 0
Taxable turnover expected in the next 30 days
Official turnover period views
keep the official retrospective and prospective turnover views separate0 GBPResultยฃ0.00
Uses policy dependency hmrc-vat-registration-threshold-gb version 2026-07-16 and the separately bound rate/classification policy in the same market workflow. The engine compares raw amounts; display rounding never feeds the decision.
UK VAT Registration Decision Tool formulas โInputs used by these formula steps
- Official turnover period viewsPrimary Turnover
- 0
- Official turnover period viewsSecondary Turnover
- 0
Highest entered turnover
Official turnover period views
keep the official retrospective and prospective turnover views separate0 GBPResultยฃ0.00
Uses policy dependency hmrc-vat-registration-threshold-gb version 2026-07-16 and the separately bound rate/classification policy in the same market workflow. The engine compares raw amounts; display rounding never feeds the decision.
UK VAT Registration Decision Tool formulas โInputs used by these formula steps
- Official turnover period viewsPrimary Turnover
- 0
- Official turnover period viewsSecondary Turnover
- 0
Remaining to threshold
Selected registration threshold
official threshold for the confirmed supported business class90,000 GBPOfficial turnover period views
keep the official retrospective and prospective turnover views separate0 GBPThreshold headroom
max(0, threshold โ highest supported turnover view)90,000 GBPResultยฃ90,000.00
Uses policy dependency hmrc-vat-registration-threshold-gb version 2026-07-16 and the separately bound rate/classification policy in the same market workflow. The engine compares raw amounts; display rounding never feeds the decision.
UK VAT Registration Decision Tool formulas โInputs used by these formula steps
- Selected registration thresholdDependency Id
- hmrc-vat-registration-threshold-gb
- Selected registration thresholdPolicy Version
- 2026-07-16
- Official turnover period viewsPrimary Turnover
- 0
- Official turnover period viewsSecondary Turnover
- 0
- Threshold headroomThreshold
- 90,000
- Threshold headroomHighest Turnover
- 0
Inputs used
- Cost amount
- 60
- Target retained margin
- 0.4
- Cost tax basis
- 0
- VAT jurisdiction
- 1
- VAT supply class
- 1
- Prior 12 months taxable turnover
- 0
- Expected next 30 days taxable turnover
- 0
- VAT registration state
- 1
- Can input VAT be recovered?
- 1
- Confirmed input VAT rate
- 0.2
- Does the displayed price include VAT?
- 1
- Current displayed price
- 100
- Customer and transaction classification
- 1
- Policy effective-date check
- 1
- Turnover scope check
- 1
Open this calculator with preset values
This calculator supports documented, shareable scenario URLs. Compatible assistants and applications can construct links using the parameters below.
Scenario links contain only allowlisted numeric and closed-choice inputs shown in the URL; Margin101 excludes free text and identifying fields. Anyone you share the URL with can read those numbers, so do not include private or identifying data.
| Parameter | Meaning | Unit | Allowed values | Presence | Default |
|---|---|---|---|---|---|
| costExclusive | Enter per-unit cost on the selected VAT basis. | GBP/unit on the selected VAT cost basis | 0 to 10000000 | Required | 60 |
| costTaxBasis | Confirm whether the entered cost includes tax. | โ | 0 (Tax-exclusive cost), 1 (Tax-inclusive cost) | Required | Tax-exclusive cost |
| currentDisplayedPrice | Optional comparison price on the selected VAT basis. | GBP/unit on the selected displayed-price VAT basis | 0 to 10000000 | Optional | 100 |
| customerClassCode | Confirm that the customer and transaction are inside the displayed domestic supply workflow. | โ | 1 (Confirmed supported domestic customer and transaction), 0 (Cross-border, exempt or uncertain customer scope โ unsupported) | Required | Confirmed supported domestic customer and transaction |
| displayedPriceIncludesTax | Controls whether displayed price adds tax to retained revenue. | โ | 1 (Yes โ show price including VAT), 0 (No โ show price excluding VAT) | Required | Yes โ show price including VAT |
| inputTaxRate | Required for recoverable VAT in a tax-inclusive cost; separate from output rate. | decimal input VAT rate on the entered cost | 0 to 1 | Required | 0.2 |
| inputTaxRecoverable | Choose No when tax paid remains in effective cost. | โ | 1 (Yes), 0 (No) | Required | Yes |
| jurisdictionCode | Special Northern Ireland cases fail closed. | โ | 1 (Great Britain), 0 (Northern Ireland or special case โ unsupported) | Required | Great Britain |
| policyEffectiveCode | Confirm that the reviewed rate and registration rules apply to the transaction and turnover periods. | โ | 1 (Reviewed policy period confirmed), 0 (Effective date not confirmed โ stop calculation) | Required | Reviewed policy period confirmed |
| registrationState | Choose the confirmed status; uncertainty keeps an authority warning visible. | โ | 1 (Registered), 0 (Not registered), 2 (Not sure โ check the authority rules) | Required | Registered |
| supplyClassCode | Exempt and unknown supplies fail closed. | โ | 1 (Standard-rated โ 20%), 2 (Reduced-rate โ 5%), 3 (Confirmed zero-rated), 0 (Exempt or unknown โ unsupported) | Required | Standard-rated โ 20% |
| targetMargin | Gross profit share retained before VAT. | decimal gross-margin rate on VAT-exclusive retained revenue | 0 to 0.95 | Required | 0.4 |
| thresholdPrimary | Enter turnover for this exact measured period. | GBP of taxable turnover/prior 12 months | 0 to 10000000 | Required | 0 |
| thresholdSecondary | Enter turnover for this separate measured period. | GBP of expected taxable turnover/next 30 days | 0 to 10000000 | Required | 0 |
| turnoverScopeCode | The amounts must use the authority-defined taxable or GST turnover scope. | โ | 1 (Confirmed official turnover scope), 0 (Not confirmed โ stop calculation) | Required | Confirmed official turnover scope |
UK VAT Registration Decision Tool: threshold status
Use the UK VAT result as a bounded planning review, not a registration or tax determination.
Formula summary
- Primary formula
- R = 2 when a reviewed trigger applies; R = 1 at an equality boundary; otherwise R = 0
Data used here
- Great Britain VAT registration threshold tests: HM Revenue & Customs; verified; checked 2026-07-16.
- Great Britain VAT rate classes: HM Revenue & Customs; verified; checked 2026-07-16.
Decision checks
Stress-test the decision
Retest projected turnover, cost and customer-facing price without changing jurisdiction or classification at the same time.
Assumptions and sources
- Great Britain VAT registration threshold tests
- HMRC VAT registration guidance Checked 2026-07-16.
Primary source โ - Great Britain VAT rate classes
- HMRC current VAT rates Checked 2026-07-16.
Primary source โ
When this estimate can be misleading
- This workflow does not determine VAT registration, taxability, place of supply, exemptions, filing dates or liability.
- Only the displayed business classes and period tests are supported; uncertain or additional cases stop instead of using a guessed threshold.
- The entered amounts must use the authority-defined taxable-turnover scope and must not mix periods or tax bases.
- A below-threshold result does not rule out another registration trigger, voluntary registration or a special rule.
- The price calculation supports only the displayed jurisdiction/place-of-supply, supply and customer classifications, registration state and effective-date row; unsupported VAT cases fail closed.
- Use the official authority guidance or a qualified adviser before acting.
- Use the UK VAT result as a bounded planning review, not a registration or tax determination.
Educational estimate, not advice. See all assumptions & limitations โ
Related reading
Guides to interpret the decision and its assumptions.
- UK VAT-Aware Pricing: Registration and Price Presentation
Keep the business economics separate from UK VAT registration, rate classification and inclusive-price presentation checks.
Read guide
Frequently asked questions
How do I review a supported UK VAT registration scenario and the resulting customer price and retained margin?
Confirm the selected scope and effective date with the linked authority before changing registration treatment or customer price.
Does this decide whether the business must register?
No. It compares only supported turnover views with a reviewed threshold and always requires an authority check.
Why are the periods shown separately?
The relevant authorities apply distinct retrospective or prospective tests. Combining them would change the rule.
Does Margin101 store my turnover?
Tool inputs and results stay in this browser. Anonymous categorical usage analytics send only governed page, tool, cluster and action identifiers; tool inputs and results are never sent. Error monitoring is disabled. Optional saved state stays only on this device.
Is this tax or legal advice?
No. It is educational threshold triage; confirm the actual obligation with the authority or a qualified adviser.
What evidence should I check before making the decision?
Check the source record, timing and excluded costs behind the result before making the business decision.
How should I treat tax in this calculation?
Use the tax basis and rate shown by the tool, confirm that they fit the transaction and jurisdiction, and keep every input on one consistent basis.