Value Added Tax (VAT)
| From |
1 April 2017 |
| Standard rate |
20% |
| VAT fraction |
1/6 |
| Reduced rate |
5% |
| Current Turnover Limits |
| Registration – last 12 months or next 30 days over |
£85,000 from 1 April 2017 |
| Deregistration – next 12 months under |
£83,000 from 1 April 2017 |
| Annual and Cash Accounting Scheme |
£1,350,000 |
| Flat Rate Scheme |
£150,000 |
VAT Flat Rate Scheme
As announced in the Autumn Statement 2016, there will be a new 16.5% rate from 1 April 2017 for businesses with limited costs, such as many labour-only businesses.
Anti-forestalling provisions have been introduced to prevent any business defined as a limited cost trader from continuing to use a lower flat rate beyond 1 April 2017.