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Value Added Tax

VAT for Small Businesses

You have landed on the beginners' guide to Value Added Tax (VAT) in the United Kingdom. VAT is a tax levy.

WHAT EXACTLY IS VAT: How does Value Added Tax affect my business?

As a rule, most goods' suppliers and service providers charge Value Added Tax (VAT). The tax is added to most supplies and services.

It includes selling goods, renting, or hiring them. VAT applies to most businesses and self-employed persons.

This is where you find out when to register and what are the current rates of VAT.

How does Value Added Tax deregistration work? What are the benefits of the Cash Accounting Scheme and when is VAT registration necessary?

Value Added Tax Guide

VAT on Building a New HomeBuilding a New Home

VAT ON BUILDING A NEW HOUSE: How does VAT work on new builds? This guide is about building a new home and VAT responsibilities. Find information on Value Added Tax refunds on building new homes and property conversions.


How to Calculate VAT Taxable TurnoverCalculate VAT Taxable Turnover

CALCULATING VATABLE SALES TURNOVER: Simple examples showing how to calculate your VAT taxable turnover. The total VATable sales value is the sum of everything you have sold less any sales tax exempt items.


VAT Cash Accounting Scheme Rules GuideVAT Cash Accounting Scheme

CASH ACCOUNTING: UK businesses can benefit by joining the VAT Cash Accounting Scheme. But, the business must meet thresholds and eligibility criteria in this type of cash accounting for VAT.


Reporting VAT Errors and CorrectionsVAT Errors and Corrections

VAT CORRECTIONS: Learn how to make adjustments or correct errors on your VAT Return Form. Contact the VAT error correction helpline if you want to report an error or inaccuracy.

RECLAIMING VAT: There are some items you can claim for and others you cannot reclaim. Find out the process for reclaiming VAT back on business purchases and claiming VAT on vehicle expenses.

VAT FUEL SCALE CHARGE: Work out the VAT fuel scale charge on private use of fuel purchased for a business vehicle. It means you do not need to keep detailed mileage records.


VAT Flat Rate Scheme in the United KingdomVAT Flat Rate Scheme

FIXED RATE OF VAT: A section to help determine whether the Flat Rate VAT Scheme is right for your business. The guide explains the current flat rates of VAT, eligibility criteria, and thresholds.

FLAT RATE PERCENTAGES: Check the process for working out VAT flat rate scheme percentages. There are periodic changes to the flat rate scheme so you must use the most current proportions.


Reporting VAT Fraud in the United KingdomVAT Fraud

REPORTING VAT FRAUD: Committing VAT fraud is a serious crime in the United Kingdom. You can contact HM Revenue and Customs to report VAT fraud online. There is no need to give your name and you can make the report by telephone if you prefer. Contact the Customs 24 Hour Hotline Telephone 0800 595 000.

Note: You may be liable for the tax if you know about or suspect VAT fraud but fail to report it.


VAT in Insolvency GuideVAT in Insolvency

INSOLVENCY & VAT REGISTRATION: What are your VAT responsibilities for insolvency? Find out about pre-insolvency and de-registration for Value Added Tax. There is further information explaining how to pay your final VAT bill to HM Revenue and Customs.


Log In and Use VAT Online ServicesVAT Online Services

GENERAL ENQUIRIES: Contact HM Revenue and Customs for questions about VAT or for reporting changes to your business.
Telephone: 0300 200 3700 (Monday to Friday: 8am to 6pm)
HM Revenue and Customs (VAT Written Enquiries Team)
Alexander House, 21 Victoria Avenue, Southend-On-Sea, SS99 1BD United Kingdom

USING VAT ONLINE SERVICES: There is a simple way to submit your VAT return online. You can get quick access by logging in to your HM Revenue and Customs account. VAT online services also allow you to analyze your value added tax account.

You need a VAT number and an HMRC online account (Government Gateway) to use this service. You get this information when you register your business for VAT.

NOVA LOG IN: The NOVA service lets you inform HMRC that you brought a vehicle into the United Kingdom. Log in to the government website to use the Notification of Vehicle Arrivals (NOVA) service.


VAT Record Keeping GuideVAT Record Keeping

KEEPING VAT RECORDS: As a rule, VAT record keeping is part of running a business in the United Kingdom. Find out how to keep records for VAT including invoices and a VAT account.

VAT VISITS: How often you get VAT visits and inspections depends on several factors. The guide explains the procedures for VAT checks conducted by HM Revenue and Customs.


VAT Registration in the United KingdomVAT Registration

REGISTER FOR VAT: Find out exactly how VAT Registration works and when you must register with HM Revenue and Customs in the United Kingdom? This section also explains about taxable turnover for small businesses and VAT registration thresholds.

HOW TO CHANGE VAT DETAILS: You must notify HMRC of any changes to your VAT registered business. VAT changes you need to report include your business contact information and bank details..

REGISTER FOR VAT IN ANOTHER EU COUNTRY: This is most likely if you supply digital services to clients based overseas. You must register in each country or sign up and use the VAT Mini One Stop Shop service. This rule applies even if your turnover stays below the VAT Registration threshold.

Note: Digital services include telecommunications services, video on demand, broadcasting, as well as downloadable apps, games, music, eBooks, and software.

VAT RECORD KEEPING: Your business must keep VAT records for at least 6 years (or 10 years if you use VAT MOSS billing).

VAT REGISTRATION THRESHOLD: What is the current VAT registration threshold in the United Kingdom? We show this year's sales tax thresholds in simple table format. You can also find information about the Flat Rate Scheme, the Annual Accounting Scheme, and the Cash Accounting Scheme.


Tax on Shopping and Services GuideVAT on Shopping and Services

TAX ON SHOPPING: Value Added Tax is a form of taxation paid on most shopping goods and services. Find out how different rates of tax on shopping and services affect the popular products we use.


UK VAT Guide for Small Businesses: Value Added Tax Overview and Listed Categories