| Standard rate | 17.5% |
| Reduced rate | 5% |
| Annual Registration Limit - from 1.4.07 (1.4.06 - 31.3.07 £61,000) |
£64,000 |
| Annual Deregistration Limit - from 1.4.07 (1.4.06 - 31.3.07 £59,000) |
£62,000 |
Flat Rate Scheme - allows businesses to calculate their VAT payment as a percentage of their VAT inclusive turnover. Limits - annual VAT exclusive taxable turnover does not exceed £150,000 and total VAT exclusive annual turnover does not exceed £187,500. Leave on anniversary of scheme where total VAT inclusive annual turnover exceeds £225,000. Cash Accounting - allows businesses to account for input and output VAT on a paid and received basis. Limits from 1 April 2007 - where annual VAT exclusive taxable turnover does not exceed £1,350,000. Leave at end of a VAT period where annual VAT exclusive taxable turnover exceeds £1,600,000. Annual Accounting - allows businesses to smooth out cash flow by paying a set amount, either monthly or quarterly. Only one VAT return due a year. Limits - where annual VAT exclusive taxable turnover does not exceed £1,350,000. Leave on anniversary of scheme where annual VAT exclusive taxable turnover exceeds £1,600,000. |
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