Value added tax
|From 1 April 2015||From 1 April 2014|
|Standard rate VAT fraction||1/6||1/6|
|Reduced rate VAT fraction||1/21||1/21|
|Taxable turnover limits|
|Registration - last 12 months or next 30 days over||£82,000||£81,000|
|Deregistration - next 12 months under||£80,000||£79,000|
|Cash accounting scheme - up to||£1,350,000||£1,350,000|
|Optional flat rate scheme|
|- joining up to||£150,000||£150,000|
|- exiting over||£230,000||£230,000*|
|Annual accounting scheme - up to||£1,350,000||£1,350,000|
A business must leave the scheme when turnover increases to £230,000. However, a business can remain in the scheme with HMRC's written agreement provided it can be shown that total sales in the following 12 months will be less than £191,500 including VAT.
Did you know?
The Treasury is expecting to raise £102.3 billion (2014/15 - £97.6 billion) from VAT.
It is expected that the standard rate of VAT will remain at 20% until at least after the 2015 General Election.
Cars and your VAT return
VAT scale figures for private use are based on carbon emissions. Please refer here for the scale figures for VAT returns.