For VAT purposes, goods and services are grouped into four categories:

1.

Standard-rated supplies
A standard-rated supply is taxable at the standard rate of VAT of 17.5%. For more information, please click here. For a list of examples, click here.

2.

Reduced rated supplies
A reduced-rated supply is chargeable to VAT at the rate of 5%. Please click here for a list of reduced-rated supplies.

3.

Zero-rated supples
A zero-rated suppy is a taxable supply, but it is chargeable to VAT at rate of 0%. Please click here for a list of zero-rated supplies.

4.

Exempt supplies
No VAT is chargeable on an exempt supply, but input tax cannot be reclaimed except as computed under the provisions on partial exemption. For a list of exempt supplies, please click here.

Standard rate (VAT fraction 3/23)

Reduced rate (VAT fraction 1/21)

5%

Registration limit from 01/05/09

£68,000

Deregistration limit from 01/05/09

£66,000

Cash accounting annual turnover limit (maximum)

£1,350.000

Annual accounting scheme (maximum)

£1,350,000

Flat rate scheme annual taxable turnover limit (maximum)

£150,000

Scale charges
The scale charges for private use of business fuel is now based on CO2 emissions rating of the car. A different charge applies for each 5g/km increase between 140g/km (min) and 240 g/km (max). Please click here for a full table of the charges.