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Tax Information
Value Added Tax
Rates
| Standard |
Zero |
Reduced |
| 15% * |
0.0% |
5.0% |
* WEF 1/12/08 previously 17.5%
Annual accounting scheme
A business may, subject to conditions, complete one VAT return a year. Before 1 April 2006, only businesses with taxable turnover up to £150,000 could join the scheme immediately; other businesses had to have been registered for 12 months.
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Can join if taxable supplies in next year
not expected to exceed:
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Must leave at end of accounting
year if taxable supplies exceed:
|
1/4/06 onwards
1/4/04-31/3/06
1/4/01-31/3/04
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£1,350,000
£660,000
£600,000
|
£1,600,000
£825,000
£750,000
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Cash accounting scheme
A business may, subject to conditions, account for an pay VAT on the basis of cash paid and received. It can join the scheme at any time as follows:
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Can join if taxable supplies in next year not expected to exceed:
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Must leave at end of accounting year if taxable supplies exceed:
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Unless turnover for next year not expected to exceed: |
1/4/07 onwards
1/4/04-31/3/07
1/4/01-31-3/04
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£1,350,000
£660,000
£600,000
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£1,600,000
£825,000
£750,000
|
£1,350,000
£660,000
£600,000
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Registration limits (UK taxable supplies)
A person who makes taxable supplies is liable to be registered:
(a) at the end of any month, or
(b) at any time, if;
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(a) turnover in past year *
(b) turnover in the next 30 days **
exceeds:
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Unless, in the cash of (a), turnover for next year not expected to exceed: |
1/4/08 onwards
1/4/07-31/3/08
1/4/06-31/3/07
1/4/05-31/3/09
1/4/04-31/3/08
10/4/03-31/3/04
25/4/02-9/4/03
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£67,000
£64,000
£61,000
£60,000
£58,000
£56,000
£55,000
|
£65,000
£62,000
£59,000
£58,000
£56,000
£54,000
£53,000
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* Value of taxable supplies in the year then ending
** If there are reasonable grounds for believing the value of taxable supplies will exceed limit.
Deregistration limits (UK taxable supplies)
A registered taxable person ceased to be liable to be registered if, at any time, HMRC are satisfied that the value of taxable supplies in the year then beginning will not exceed:
| Future turnover |
Annual limit |
1/4/08 onwards
1/4/07-31/3/08
1/4/06-31/3/07
1/4/05-31/3/06
1/4/04-31/3/05
10/4/03-31/3/04
25/4/02-9/4/03
|
£65,000
£62,000
£59,000
£58,000
£56,000
£54,000
£53,000
|
Unless the reason for not exceeding the limit during that year is that the person will cease making taxable
supplies or suspend making taxable supplies for 30 days or more
Optional Flat Rate Scheme for Small Businesses
Flat rate percentage (determined by trade sector of business) applied to tax-inclusive turnover.
|
Maximum annual taxable turnover* |
Maximum annual taxable turnover* plus exempt/non-taxable income
|
10/4/04 onwards
24/4/02-9/4/03
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£150,000
£100,000
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£187,500
£125,000
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* VAT-Exclusive
| Category of Business |
from 1/12/08 |
Appropriate %
before 1/1/04 |
from 1/1/04 |
| Accountancy or book keeping |
11.5 |
13.5 |
13 |
| Advertising |
8.5 |
11 |
9.5 |
| Agricultural Services |
7 |
9 |
7.5 |
| Animal husbandry |
|
11 |
N/A |
| Any other activity not listed elsewhere |
9 |
11 |
10 |
| Architect, civil and structural engineer or surveyor |
11 |
13.5 |
12.5 |
| Boarding or care of animals |
9.5 |
N/A |
10.5 |
| Business services that are not listed elsewhere |
9.5 |
12.5 |
11 |
| Catering services, including restaurants and takeaways |
10.5 |
13 |
12 |
| Civil and structural engineer or surveyor |
|
N/A |
1.5 |
| Computer and IT consultancy or data processing |
11.5 |
14.5 |
13 |
| Computer repair services |
10 |
13.5 |
11 |
| Dealing in waste or scrap |
8.5 |
11 |
9.5 |
| Entertainment or journalism |
9.5 |
12 |
11 |
| Estate agency and property management services |
9.5 |
11.5 |
11 |
| Farming or agriculture that is not listed elsewhere |
5.5 |
6.5 |
6 |
| Film, radio, television or video production |
9.5 |
N/A |
10.5 |
| Financial services |
10.5 |
12 |
11.5 |
| Forestry or fishing |
8 |
10 |
9 |
| General building or construction services (1) |
7.5 |
9 |
8.5 |
| Hairdressing or other beauty treatment services |
10.5 |
13 |
12 |
| Hiring or renting goods |
7.5 |
9.5 |
8.5 |
| Hotel or accommodation |
8.5 |
10.5 |
9.5 |
| Investigation or security |
9 |
|
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| Labour-only building or construction services (1) |
11.5 |
14.5 |
13.5 |
| Laundry or dry-cleaning services |
9.5 |
12 |
11 |
| Lawyer or legal services |
12 |
13.5 |
13 |
| Library, archive, museum or other cultural activity |
7.5 |
8.5 |
7.5 |
| Management consultancy |
11 |
13.5 |
12.5 |
| Manufacturing that is not listed elsewhere |
7.5 |
10 |
8.5 |
| Manufacturing fabricated metal products |
8.5 |
11 |
10 |
| Manufacturing food |
7 |
8.5 |
7.5 |
| Manufacturing yarn, textiles or clothing |
7.5 |
9.5 |
8.5 |
| Membership organisation |
5.5 |
7 |
5.5 |
| Mining or quarrying |
8 |
10 |
9 |
| Packaging |
7.5 |
9 |
8.5 |
| Photography |
8.5 |
10 |
9.5 |
| Post Offices (2) (from 1 April 2004) |
2 |
N/A |
2 |
| Postal and courier services (3) (before 1 April 2004) |
|
6 |
5.5 |
| Printing |
6.5 |
8.5 |
7.5 |
| Publishing |
8.5 |
10 |
9.5 |
| Pubs |
5.5 |
6 |
5.5 |
| Real estate activity not listed elsewhere |
11 |
13 |
12 |
| Repairing personal or household goods |
7.5 |
10 |
8.5 |
| Repairing vehicles |
6.5 |
8.5 |
7.5 |
| Retailing food, confectionery, tobacco, newspapers or children's clothing |
2 |
5 |
2 |
| Retailing pharmaceuticals, medial goods, cosmetics or toiletries |
6 |
8 |
7 |
| Retailing that is not listed elsewhere |
5.5 |
7 |
6 |
| Retailing vehicles or fuel |
5.5 |
8 |
7 |
| Secretarial services |
9.5 |
11.5 |
11 |
| Social work |
8 |
9 |
8.5 |
| Sport or recreation |
6 |
8 |
7 |
| Transport or storage, couriers, freight, removals and taxis (3) |
8 |
10 |
9 |
| Travel agency |
8 |
10 |
9 |
| Veterinary medicine |
8 |
11 |
9.5 |
| Wholesaling agricultural products |
5.5 |
7 |
6 |
| Wholesaling food |
5 |
7 |
5.5 |
| Wholesaling that is not listed elsewhere |
6 |
8 |
7 |
- That is, services where value of materials supplied is less than 10% of turnover of such services; any other services are 'general building or construction services'.
- From 1 April 2004 a rate of 2% applies to Post Offices (previously within postal and courier services).
- From 1 April 2004 (1 July 2004 for courier businesses applying to join scheme before 4 March 2004) rate for transport is used.
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+44 (0)121 730 3053 