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value-added-tax

Value Added Tax

VAT, or Value Added Tax, is a form of consumption tax and can be extremely complicated. The team here at Franklin Underwood are available to offer assistance with VAT registration, planning and administration, ensuring that your business doesn’t end up over or under paying!

Standard rate (1/6 of VAT-inclusive price) 20%
Registration level from 1.4.2017 £85,000 per annum
Deregistration level from 1.4.2017 83,000 per annum

Flat rate scheme (FRS)

Annual taxable turnover to enter scheme Up to £150,000
Must leave scheme if annual taxable turnover Exceeds £230,000

If using FRS, the VAT paid by the business is a fixed percentage (based on business category) of "FRS turnover" rather than the net of output tax over input tax. Input tax is usually not recoverable.