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VAT rates

  From 1 April 2021 From 1 April 2020
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 £85,000 £85,000
Deregistration - next 12 months under £83,000 £83,000
Cash accounting scheme - up to £1.35m £1.35m
Optional flat-rate scheme    
        joining up to £150,000 £150,000
        exiting over £230,000  £230,000
Annual accounting scheme - up to £1.35m £1.35m
Intrastat arrivals threshold £1.5m          £1.5m
Intrastat dispatches threshold £250,000        £250,000
EC sales list reporting threshold nil       nil

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* From 15 July 2020 to 30 September 2021, the standard rate of VAT will be cut from 20% to 5% on supplies of food and non-alcoholic drinks from pubs, restaurants, cafes, and similar premises, as well as supplies of accommodation and admission to attractions across the UK. From 1 October 2021 to 31 March 2022, the standard rate of VAT for these businesses in the leisure and hospitality sectors will be 12.5%.

VAT flat-rate scheme

A business must leave the scheme when turnover increases to more than £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.

Cars and your VAT return

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

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.