Value added tax

The current VAT percentages and the annual registration and deregistration thresholds.

Call 020 7602 6366 or email info@merchant.london

Registered businesses charge Value Added Tax (VAT) on their sales. This is known as output VAT and the sales are referred to as outputs.

Similarly VAT is charged on most goods and services purchased by the business. This is known as input VAT.

There are three rates: standard which applies to most goods and services, reduced rate for some goods and services such as home energy and zero rate goods and services, for example, most food and children's clothes.

Some supplies are exempt from VAT for example postage stamps, financial and insurance transactions.

A business is required to register for VAT if the value of taxable supplies exceeds the annual registration limit.

The government has frozen the VAT registration and deregistration limits until 1 April 2022.

Rates

Standard: 20%

Reduced: 5%*

* 12.5% for hospitality and tourism from 1 October 2021 to 31 March 2022.

Limits

Annual Registration Limit (1.4.21 to 31.3.22): £85,000

Annual Deregistration Limit (1.4.21 to 31.3.22): £83,000

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Merchant & Co was founded in 1920 by Harold Aubrey Merchant, a former mayor of Ealing. The firm has always been based along the Uxbridge Road in the Ealing and Acton area...

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Contact Details

Please call:
020 7602 6366

Merchant & Co, 20 Exhibition House, Addison Bridge Place, London W14 8XP

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