Value added tax

Self Assessment. Flat £125. No Surprises.

Value added tax

Value Added Tax (VAT) is a tax on most goods and services sold in the UK, charged at each stage of the supply chain.

Businesses with taxable turnover above the VAT registration threshold must register for VAT and charge it on their sales, while reclaiming VAT paid on purchases.

Different rates apply depending on the type of goods or services, including standard, reduced, and zero rates, with some items being exempt.

Select Tax Category:

From 1 April 2020	From 1 April 2021	From 1 April 2022	From 1 April 2023	From 1 April 2024	From 1 April 2025	From 1 April 2026
Standard rate	20%	20%	20%	20%	20%	20%	20%
Reduced rate	5%	5%	5%	5%	5%	5%	5%
Temporary reduced rate for hospitality and tourism sector (1)	5%	5% or 12.5%	N/A	N/A	N/A	N/A	N/A
Annual registration limit	£85,000	£85,000	£85,000	£85,000	£90,000	£90,000	£90,000
Annual de-registration limit	£83,000	£83,000	£83,000	£83,000	£88,000	£88,000	£88,000
Cash and annual accounting scheme turnover limit	£1.35m	£1.35m	£1.35m	£1.35m	£1.35m	£1.35m	£1.35m
Cash or annual accounting scheme - exit turnover limit	£1.6m	£1.6m	£1.6m	£1.6m	£1.6m	£1.6m	£1.6m
Flat rate schemes - entry turnover limit	£150,000	£150,000	£150,000	£150,000	£150,000	£150,000	£150,000
Flat rate schemes - exit turnover limit	£230,000	£230,000	£230,000	£230,000	£230,000	£230,000	£230,000

[1] The 5% rate applied from 8 July 2020 to 30 September 2021 and the 12.5% rate applied from 1 October 2021 to 31 March 2022.