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.

Rates

Standard: 20%

Reduced: 5%

Limits

Annual Registration Limit (1.4.24 to 31.3.25): £90,000 (£85,000)

Annual Deregistration Limit (1.4.24 to 31.3.25): £88,000 (£83,000)
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Hardwick & Morris LLP
020 7268 0100
[email protected]
41 Great Portland Street, London W1W 7LA
Registration No. OC347940

Registered to carry out audit work in the UK by the Institute of Chartered Accountants in England & Wales.  Details of our audit registration can be viewed at www.auditregister.org.uk under reference number C002487792.  Hardwick & Morris LLP is a limited liability partnership in England and Wales with the registered number OC347940.  Registered office address is 41 Great Portland Street, London, W1W 7LA.  A list of members is available from the Registered Office upon request.