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|
From 1.4.2019 most businesses above the registration threshold must comply with the Making Tax Digital requirements.
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.
Cash accounting and Annual accounting schemes
|Annual taxable turnover to enter scheme||Up to £1.35m|
|Must leave scheme if annual taxable turnover||Exceeds £1.60m|
Option to tax property
Notify HMRC within 30 days.