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Whalley and co Accounting Castle Bromwich Birmingham Accountants Bookkeeping


Whalley and co Accounting Castle Bromwich Birmingham Accountants Bookkeeping

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.

Can join if taxable supplies in next year
not expected to exceed:
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
£1,350,000
£660,000
£600,000
£1,600,000
£825,000
£750,000

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:

Can join if taxable supplies in next year not expected to exceed: Must leave at end of accounting year if taxable supplies exceed: 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
£1,350,000
£660,000
£600,000
£1,600,000
£825,000
£750,000
£1,350,000
£660,000
£600,000

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;

(a) turnover in past year *
(b) turnover in the next 30 days **
exceeds:
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
£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
* 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
£150,000
£100,000
£187,500
£125,000
* 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    
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.