Value Added Tax

From 4 Jan 2011 1 Jan 2010
Standard rate 20% 17.5%
VAT fraction 1/6 7/47
Reduced Rate 5% 5%
Current Turnover Limits
Registration - last 12 months or next 30 days over £73,000 from 1 April 2011
Deregistration - next 12 months under £71,000 from 1 April 2011
Annual accounting scheme £1,350,000
Cash accounting scheme £1,350,000
Flat-rate scheme £150,000


Online registration and online filing

Following the Minister for the Cabinet Office’s statement of 23 November 2010 on the “Digital Agenda”, subject to consultation on the detail, the Government will mandate online VAT registration, de-registration and variations. The Government will also put forward regulations which, subject to consultation, will require all remaining VAT customers to file their VAT returns online and pay electronically for periods beginning on or after 1 April 2012.

Low value consignment relief (LVCR)

The Government will reduce the LVCR threshold from £18 to £15 from 1 November 2011. This is the threshold below which goods imported from outside the European Union (including the Channel Islands) are VAT-free. The person (or business) to whom the item is addressed is classed as the importer.

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