Skip to main content

Value Added Tax (VAT)

From
1 April 2017
Standard rate
20%
VAT fraction
1/6
Reduced rate
5%
Current Turnover Limits
Registration - last 12 months or next 30 days over
£85,000 from 1 April 2017
Deregistration - next 12 months under
£83,000 from 1 April 2017
Annual and Cash Accounting Schemes
£1,350,000
Flat Rate Scheme
£150,000

VAT Flat Rate Scheme

As announced in the Autumn Statement 2016, there will be a new 16.5% rate from 1 April 2017 for businesses with limited costs, such as many labour-only businesses.

Anti-forestalling provisions have been introduced to prevent any business defined as a limited cost trader from continuing to use a lower flat rate beyond 1 April 2017.