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VAT rates

  From 1 April 2015 From 1 April 2014
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%
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
Intrastat reporting
Arrivals threshold £1,500,000  
Dispatches threshold £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 £102.3 billion (2014/15 - £97.6 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.

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