V.A.T. Tax Table
VAT is a tax that’s charged on most goods and services that VAT-registered businesses provide in the UK. VAT is charged when a VAT-registered business sells to either another business or to a non-business customer.
When VAT-registered businesses buy goods or services they can generally reclaim the VAT they’ve paid.
|Rates of Tax||2013-2014|
|Annual Registration Threshold||£79,000|
There are different VAT rates, depending on the goods or services that are being provided. Currently there are three rates:
- Standard rate 20 %
- Reduced rate 5 %
- Zero rate 0 %
What is Annual Registration Threshold?
If you’re in business, you must register for VAT if your VAT taxable turnover for the previous 12 months is more than £79,000. This figure is known as the VAT registration threshold. The threshold changes – usually once a year announced in the Budget – so you should regularly check your turnover against the current threshold.
What is De-registration Threshold?
The deregistration threshold is £77,000. If your VAT taxable turnover for the year is less than or equal to £77,000, or if you expect it to fall to £77,000 or less in the next 12 months, you can either:
- Stay registered for VAT
- Ask for your VAT registration to be cancelled