General information only, not advice for your circumstances. Please talk to us before acting.
Registration
You must register for VAT if your taxable turnover over the previous 12 months goes over £90,000, or you expect it to in the next 30 days. You can apply to deregister if turnover falls below £88,000. Voluntary registration can make sense if you sell mainly to VAT-registered businesses.
Rates
- Standard rate: 20%
- Reduced rate: 5%, for example domestic fuel
- Zero rate: 0%, for example most food and children’s clothes
Schemes
- Flat rate scheme: pay a fixed percentage of turnover, for smaller businesses
- Cash accounting: account for VAT when you are paid, not when you invoice
- Annual accounting: one return a year with interim payments
Making Tax Digital
All VAT-registered businesses must keep digital records and file returns using compatible software.
