You are using an outdated browser. Upgrade your browser today for a better experience of this site and many others.
Northampton: 01604 630745
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)
06 Jan 2021
Chancellor Rishi Sunak has announced a new £4.6 billion package of grants to support businesses through the latest national lockdown.
Chancellor Rishi Sunak has extended the Coronavirus Job Retention Scheme (CJRS) until the end of April 2021.
HMRC has issued some guidance to taxpayers that deferred their VAT payments between 20 March and 30 June 2020 and still have payments to make.
Would you like to download our mobile app from the App Store?