Value added tax

Turnover limits, VAT on fuel etc.

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 (1.4.23 to 31.3.24): £85,000

Annual Deregistration Limit (1.4.23 to 31.3.24): £83,000

Get in touch

If you feel our services and expertise could support your business or for individuals, please call us today to book a FREE consultation.

Aequitas Accountants Ltd, Elthorne Gate, 64 High Street, Pinner, Middlesex HA5 5QA

Call now Contact us