Illustration of a business owner balancing on a tightrope between the £88,000 and £90,000 VAT thresholds, representing the UK VAT registration decision point.

VAT on Services: What Businesses Need to Know 2026

VAT on service is one of the most misunderstood corners of UK tax law, and it catches out even experienced business owners. Somewhere between “I’ll sort the VAT later” and an unexpected letter from HMRC, a lot of people learn a painful lesson: VAT on services does not behave like VAT on goods, and treating […]