Value Added Tax
| Standard rate (1/6 of VAT-inclusive price) | 20% | |
| From 1.4.2024 | Pre 1.4.2024 | |
| Registration level - Taxable turnover | £90,000 | £85,000 |
| Deregistration level - Taxable turnover | 88,000 | 83,000 |
Flat Rate Scheme (FRS)
| Annual taxable turnover to enter scheme | Up to £150,000 |
| Must leave scheme if annual gross turnover | Exceeds £230,000 |
If using FRS, the VAT paid by the business is a fixed percentage (based on business category) of 'FRS turnover' rather than the net of output tax over input tax. Input tax is usually not recoverable.
Cash accounting and Annual accounting schemes
| Annual taxable turnover to enter scheme | Up to £1.35m |
| Must leave scheme if annual taxable turnover | Exceeds £1.60m |