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Rugby: 01788 575037
The current VAT percentages and the annual registration and deregistration thresholds.
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.
The government has frozen the VAT registration and deregistration limits until 1 April 2022.
Standard: 20% (unchanged from 2019/20)
Reduced: 5% (unchanged from 2019/20)
Annual Registration Limit (1.4.20 to 31.3.21): £85,000 (unchanged from 2019/20)
Annual Deregistration Limit (1.4.20 to 31.3.21): £83,000 (unchanged from 2019/20)
02 Oct 2020
The existing job support scheme, the furlough scheme, comes to an end on 31 October.
As part of the Winter Economy Plan the Self-Employment Income Support Scheme (SEISS) will be extended under the name SEISS Grant Extension.
As part of the Winter Economy Plan the government has announced options for deferred VAT and income tax self assessment payments.
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