Tax rates & allowances

Value Added Tax

Value Added Tax

Standard rate (1/6 of VAT-inclusive price) 20%
Registration level from 1.4.2018 £85,000 per annum
Deregistration level from 1.4.2018 83,000 per annum

Flat Rate Scheme (FRS)

Annual taxable turnover to enter scheme Up to £150,000
Must leave scheme if annual gross 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.

Tax rates 2018-2019PDF document