Tax Rates 2024/25
Spring Statement

Value Added Tax

Standard rate (1/6 of VAT-inclusive price) 20%
From 1.4.2024 Pre 1.4.2024
Registration level - Taxable turnover £90,000 p.a. £85,000 p.a.
Deregistration level - Taxable turnover 88,000 p.a. 83,000 p.a.
Flat Rate Scheme (FRS)
Annual taxable turnover to enter scheme Up to £150,000
Must leave scheme if annual gross 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