Value added tax

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 for two years from 1 April 2018.

Rates

Standard: 20% (unchanged from 2018/19)

Reduced: 5% (unchanged from 2018/19)

Limits

Annual Registration Limit (1.4.19 to 31.3.20): £85,000 (unchanged from 2018/19)

Annual Deregistration Limit (1.4.19 to 31.3.20): £83,000 (unchanged from 2018/19)

Why you should choose us...

As well as general accountancy and tax skills, our practice has a wealth of individual specialists enabling us to provide clients with a first class service as and when required.

Our Services

© 2019 MVL Business Services. All rights reserved. We use cookies on this website, you can find more information about cookies here.

Home | Contact us | Site map | Accessibility | Disclaimer | Help | powered by totalSOLUTION
MVL Business Services is a trading name of Xynamo 5 Ltd, trading as x5, Chartered Accountants
Xynamo 5 Ltd is registered in England and Wales Registered Company Number: 11241219 Registered Office Address: 2 Upperton Gardens, Eastbourne, East Sussex, BN21 2AH
Xynamo 5 Ltd are registered to carry out audit work in the UK and Ireland by the Institute of Chartered Accountants in England and Wales.