Value Added Tax
| Standard rate (1/6 of VAT-inclusive price) | 20% |
| Registration level from 1.4.2015 | £82,000 per annum |
| Deregistration level from 1.4.2015 | 80,000 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.