The standard VAT rate is now 20%. Businesses must remember to incorporate the new VAT rate into their existing bookkeeping software so that the correct amount of VAT is accounted. In addition, sale invoice issued to customers must also include the correct VAT rate.
The VAT for reduced rate has not changed, it is still at 5%.
From
|
1 Dec 2008
|
1 Jan 2010
|
4 Jan 2011
|
|
Standard Rate
|
15%
|
17.5%
|
20%
|
| VAT fraction |
3/23
|
7/47
|
1/6
|
| Reduced Rate |
5%
|
5%
|
5%
|
| Reduced Rate fraction |
1/21
|
1/21
|
1/21
|
The VAT registration threshold is currently £70,000. Businesses must be aware that if their annual sales for the last twelve months or next 30 days are expected to exceed this amount, they must register for VAT with HM Revenue and Customs as soon as possible.
Some businesses may decide to de-register for VAT for one reason or another. The de-registration limit is £68,000.
VAT registered businesses are entitled to opt for either annual accounting scheme or cash accounting scheme if their sales are up to £1,350,000.
VAT flat rate scheme limit remain unchanged at £150,000.
Taxable Turnover Limits
|
To 30 April 2009
|
From 1 May 2009
|
From 24 March 2010
|
| Registration - last 12 months or next 30 days over |
£67,000
|
£68,000
|
£70,000
|
| Deregistration - next 12 months under |
£65,000
|
£66,000
|
£68,000
|
| Annual accounting scheme up to |
£1,350,000
|
£1,350,000
|
£1,350,000
|
| Cash accounting scheme up to |
£1,350,000
|
£1,350,000
|
£1,350,000
|
| Flat rate scheme up to |
£150,000
|
£150,000
|
£150,000
|
VAT on fuel for private use in cars
Where businesses wish to reclaim the input VAT on fuel which has some degree of private use, they must account for output VAT on a scale charge.
The table shows the VAT chargeable for quarters commencing on or after 4 January 2011.
Quarterly VAT
CO2 emissions (g/km)
|
Fuel scale charge £
|
VAT on 3 month charge
|
Net of VAT on 3 month charge
|
| 120 and below |
141.00 |
23.50
|
117.50
|
| 125 |
212.00
|
35.33
|
176.67
|
| 130 |
212.00
|
35.33
|
176.67
|
| 135 |
227.00
|
37.83
|
189.17
|
| 140 |
241.00
|
40.17
|
200.83
|
| 145 |
255.00
|
42.50
|
212.50
|
| 150 |
269.00
|
44.83
|
224.17
|
| 155 |
283.00
|
47.17
|
235.83
|
| 160 |
297.00
|
49.50
|
247.50
|
| 165 |
312.00
|
52.00
|
260.00
|
| 170 |
326.00
|
54.33
|
271.67
|
| 175 |
340.00
|
56.67
|
283.33
|
| 180 |
354.00
|
59.00
|
295.00
|
| 185 |
368.00
|
61.33
|
306.67
|
| 190 |
383.00
|
63.83
|
319.17
|
| 195 |
397.00
|
66.17
|
330.83
|
| 200 |
411.00
|
68.50
|
342.50
|
| 205 |
425.00
|
70.83
|
354.17
|
| 210 |
439.00
|
73.17
|
365.83
|
| 215 |
454.00
|
75.67
|
378.33
|
| 220 |
468.00
|
78.00
|
390.00
|
| 225 |
482.00 |
80.33 |
401.67 |
| 230 and more |
496.00
|
82.67
|
413.33
|
Concise Accountancy Services The London Accountants - making VAT administration simple for businesses.
