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.

The government has frozen the VAT registration and deregistration limits until 1 April 2022.

Rates

Standard: 20%

Reduced: 5%*

* 12.5% for hospitality and tourism from 1 October 2021 to 31 March 2022.

Limits

Annual Registration Limit (1.4.21 to 31.3.22): £85,000

Annual Deregistration Limit (1.4.21 to 31.3.22): £83,000


Home | Site map | Accessibility | Disclaimer | Privacy |

© 2021 Carr Jenkins Hood. All rights reserved.

Carr Jenkins Hood is the trading name of Redwood Wales Limited, a Company registered in England and Wales Number: 05137675.
Registered office: Redwood Court, Tawe Business Village, Swansea Enterprise Park, Swansea, SA7 9LA.

We use cookies on this website, you can find more information about cookies here.