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The current VAT percentages and the annual registration and deregistration thresholds.
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.
The government has frozen the VAT registration and deregistration limits until 1 April 2022.
* 12.5% for hospitality and tourism from 1 October 2021 to 31 March 2022.
Annual Registration Limit (1.4.21 to 31.3.22): £85,000
Annual Deregistration Limit (1.4.21 to 31.3.22): £83,000
Why not contact Khadka Finn & Co today for more information or a FREE no obligation quote.
On 21 December 2021, Chancellor of the Exchequer, Rishi Sunak, unveiled a £1 billion COVID-19 fund, including cash grants of up to £6,000 per premises for each eligible firm.
HMRC has reminded self assessment taxpayers to declare any COVID-19 grant payments on their 2020/21 tax return.