VAT rates

  From 1 April 2016 From 1 April 2015
Standard rate 20% 20%
Standard rate VAT fraction 1/6 1/6
Reduced rate 5% 5%
Reduced rate VAT fraction 1/21 1/21
Zero rate  0% 0%
Registration - last 12 months or next 30 days over £83,000 £82,000
Deregistration - next 12 months under £81,000 £80,000
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
Arrivals threshold £1,500,000      £1,500,000
Dispatches threshold £250,000        £250,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 £105.4 billion (2015/16 - £101.5 billion) from VAT.

Cars and your VAT return

VAT scale figures for private use are based on carbon emissions. Please refer here for the scale figures for your VAT returns.