VAT Tax

Basic information about VAT tax:

Registration:
Companies with turnover exceeding £85,000 must register with HMRC. You can also register voluntarily if turnover is below the threshold.

VAT Rates:
Standard Rate:
The standard VAT rate applies to most goods and services. The standard rate is 20%.
Reduced Rate:
Some goods and services qualify for a reduced rate of 5%, including certain energy-saving materials, child car seats, and energy.
Zero Rate:
Some goods and services are taxed at a zero rate, meaning no VAT is imposed. This applies to most food products, books, and children’s clothing.

VAT Returns and Payments:
Quarterly Reporting:
Companies registered for VAT typically submit VAT returns to HMRC quarterly.

VAT Tax Payment Deadlines:

Payments are usually required within one month and seven days after the end of the VAT accounting period.

It is important to note that checking for updates or changes in VAT regulations, rates, or thresholds is essential, as tax laws may change. For the latest and most accurate information, it is recommended to consult official HMRC sources or seek assistance from a tax professional.