VAT rates

A person who is registered to charge VAT in the course of a business carried on in the UK charges VAT on the taxable supply of goods and services. They are able to claim the VAT back on the business expenses incurred.

Quarterly VAT returns must be completed and submitted to HM Revenue & Customs with any payments of VAT being made to them or repayments claimed from them. Small business can opt for annual accounting of VAT rather than quarterly.

The following VAT rates apply.

Rates per year2015/20162016/2017
Registration threshold£82,000£83,000
Deregistration threshold£80,000£81,000
Standard rate20%20%
Reduced rate5%5%

Business VAT registration numbers can be verified online at European Union online.

Digita - Thomson Reuters
Digita - Thomson Reuters