Value Added Tax
Standard rate (1/6 of VAT-inclusive price) 20% Registration level from 1.4.2017 £85,000 per annum Deregistration level from 1.4.2017 83,000 per annum
Flat rate scheme (FRS)
Annual taxable turnover to enter scheme Up to £150,000 Must leave scheme if annual taxable turnover Exceeds £230,000
If using FRS, the VAT paid by the business is a fixed percentage (based on business category) of “FRS turnover” rather than the net of output tax over input tax. Input tax is usually not recoverable.
Cash accounting and Annual accounting schemes
Annual taxable turnover to enter scheme Up to £1.35m Must leave scheme if annual taxable turnover Exceeds £1.60m
Option to tax property
Notify HMRC within 30 days.