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VAT

For a wealth of advice and information on aspects of VAT, including essential tips for VAT planning, and how to survive the VAT inspector's visit, visit our VAT guides.

The standard rate of VAT increased on 4 January 2011 from 17.5% to 20% and it is envisaged that this rate will remain in force until at least 2014.

An introduction to VAT

What is VAT?

Value added tax

VAT rates, registration and deregistration limits.

Bad debt relief

Under the normal rules of VAT, a supplier has to account for output tax even if the supply has not been paid for. VAT cannot be reclaimed by issuing a credit note for the unpaid amount.

Issuing VAT invoices

Where a VAT registered person makes supplies of goods or services to another VAT registered person, subject to the standard or reduced rate.

Recovering VAT on staff expenses

Although the VAT rules normally prevent you reclaiming VAT on supplies that are not made direct to you, there are certain circumstances when the rules are relaxed.

Fuel scale charges

Fuel scale charges for VAT for use from 1 May 2011 Fuel scale charges for VAT VAT fuel scale charges for 1 month period VAT fuel scale charges for 3 month periods VAT fuel scale charges for 12 month periods

When to add VAT?

This subject has been causing confusion for the whole 35 years we have had VAT in the UK. There are a number of issues to consider.

Impact of the card protection plan case

Affiliated to the subject of recharges is the issue of how to differentiate between single and multiple supplies for VAT purposes. In certain circumstances, there will be different parts or facets to a supply, which are viewed together as one overall ...

Deregistering for VAT

Deregistration from VAT is usually a fairly straightforward process. However, there are some important aspects to bear in mind which, if misunderstood, could prove costly.

The VAT change on 4 January 2011 (for reference purposes)

The significant VAT announcement in the Emergency Budget was the increase in the standard rate from 17.5 per cent to 20 per cent with effect from 4 January 2011, although other, minor changes were also announced.

Cash accounting scheme

Cash accounting enables you to account for VAT on the basis of payments received and made instead of on tax invoices issued and received.

Flat rate scheme

This scheme is designed to reduce the cost of complying with VAT obligations by simplifying the way small businesses calculate their VAT.

Annual accounting scheme

Under annual accounting, you make agreed payments on account and need complete only one VAT return per year. The purpose of the scheme is to aid cashflow and budgeting and reduce the paperwork involved.

VAT do's and don’ts

If you need to check you are being given a valid VAT number you can call HMRC's national advice service on 0845 010 9000 from 8am to 8pm Monday to Friday.

The VAT man cometh

One of life's certainties is that if you are a VAT registered business, sooner or later you will receive a visit from a HM Revenue & Customs officer. VAT...

How to survive the enforcement powers

The complicated penalty system for VAT errors has been simplified, but it is not all good news.

Group VAT registration

VAT grouping occurs where two or more corporate bodies, usually companies or limited liability partnerships are treated as a single taxable "person" for VAT purposes. A VAT group is treated in the same way as a single company registered for VAT on its own.