With effect from I January 2010, the standard VAT rate is now increased from 15% to 17.5%. Businesses must remember to incorporate the new VAT rate into their existing bookkeeping system to reflect the correct rate and also ensure customers are charged with the correct VAT amount on their orders.
The VAT reduced rate has no changed, at 5%.
From
|
1 Dec 2008
|
1 Jan 2010
|
|
Standard Rate
|
15%
|
17.5%
|
| VAT fraction |
3/23
|
7/47
|
| Reduced Rate |
5%
|
5%
|
| Reduced Rate fraction |
1/21
|
1/21
|
The VAT registration threshold is currently £68,000 from 1 May 2009. Businesses must be aware that if your annual sales for the last twelve months or next 30 days are expected to exceed this amount, you 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 £66,000 from 1 May 2010.
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 has no change, stay at £150,000. To read more about how VAT flat rate scheme work, click here.
Taxable Turnover Limits
|
To 30 April 2009
|
From 1 May 2009
|
| Registration - last 12 months or next 30 days over |
£67,000
|
£68,000
|
| Deregistration - next 12 months under |
£65,000
|
£66,000
|
| Annual accounting scheme up to |
£1,350,000
|
£1,350,000
|
| Cash accounting scheme up to |
£1,350,000
|
£1,350,000
|
| Flat rate scheme up to |
£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 1 May 2009. The last two columns take account of the change of the standard rate of VAT from 15% to 17.5% with effect from 1 January 2010.
Quarterly VAT
CO2 emissions (g/km)
|
Fuel scale charge £
|
VAT@15%
|
VAT@17.5%
|
| 120 and below |
126
|
16.43
|
18.76
|
| 121 - 139 |
189
|
24.65
|
28.14
|
| 140 - 144 |
201
|
26.21
|
29.93
|
| 145 - 149 |
214
|
27.91
|
31.87
|
| 150 - 154 |
226
|
29.47
|
33.65
|
| 155 - 159 |
239
|
31.17
|
35.59
|
| 160 - 164 |
251
|
32.73
|
37.38
|
| 165 - 169 |
264
|
34.43
|
39.31
|
| 170 - 174 |
276
|
36.00
|
41.10
|
| 175 - 179 |
289
|
37.69
|
43.04
|
| 180 - 184 |
302
|
39.39
|
44.97
|
| 185 - 189 |
314
|
40.95
|
46.76
|
| 190 - 194 |
327
|
42.65
|
48.70
|
| 195 - 199 |
339
|
44.21
|
50.48
|
| 200 - 204 |
352
|
45.91
|
52.42
|
| 205 - 209 |
365
|
47.60
|
54.36
|
| 210 - 214 |
378
|
49.30
|
56.29
|
| 215 - 219 |
390
|
50.86
|
58.08
|
| 220 - 224 |
403
|
52.56
|
60.02
|
| 225 - 229 |
416
|
54.26
|
61.95
|
| 230 - 234 |
428
|
55.82
|
63.74
|
| 235 and above |
441
|
57.52
|
65.68
|
Canterbury London Accountants - making VAT administration simple for businesses.
