Value added tax

Registered businesses charge Value Added Tax (VAT) on their sales. This is known as output VAT and the sales are referred to as outputs.

Similarly VAT is charged on most goods and services purchased by the business. This is known as input VAT.

There are three rates: standard which applies to most goods and services, reduced rate for some goods and services such as home energy and zero rate goods and services, for example, most food and children's clothes.

Some supplies are exempt from VAT for example postage stamps, financial and insurance transactions.

A business is required to register for VAT if the value of taxable supplies exceeds the annual registration limit.

Rates

Standard: 20%

Reduced: 5%

Limits

Annual Registration Limit (1.4.24 to 31.3.25): £90,000 (£85,000)

Annual Deregistration Limit (1.4.24 to 31.3.25): £88,000 (£83,000)

Home | Attribution | Contact us | Site map | Accessibility | Help | Disclaimer |

© 2024 Sure Accounting Limited. All rights reserved.


ACCA logo
Sure Accounting Limited, Arena Business Centre, 9 Nimrod Way, Ferndown, Dorset BH21 7UH
Telephone: 01202 802157

Registered in England, Company no 5965950 | Registered Office: Sure Accounting Limited, Arena Business Centre, 9 Nimrod Way, Ferndown, Dorset BH21 7UH