UK VAT rates and thresholds 2022/23

Updated on July 18, 2022

What is VAT?

‘Value Added Tax’ is the abbreviation for the tax. Most goods and services are subject to this tax.

Visit our accounting glossary to learn more about VAT.

Value-added tax (VAT) registration threshold

Individuals and businesses alike are required to register for VAT if they reach or intend to surpass their respective levels for VAT Taxable Turnover.

According to current VAT regulations, the current VAT registration maximum is £85,000

Check out our guide to VAT rates to learn more about the rate that applies to you.

Example: John’s method for calculating the amount of VAT he owes

Graphic designer John works on his own terms. Since his company is VAT-registered, he must charge VAT at the regular rate on all services he provides (20 percent ).

John charges his customer £2,000 + VAT for the services he provided.

(£2,000 x 20%) Equals £2,400 in total

For his firm, he’ll keep £2,000, but he owes HMRC £400 in VAT, which he must include on his next VAT return and pay over to the government agency.

In order to make a payment on your VAT bill, here are some tips

The choice is yours: online or over the phone (Faster Payments)

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Next day or the day after

SAME OR NEXT DAY CHAPS

Bacs has a three-day work week.

Three working days for a debit card

When you use a credit card, you agree to (1.5 percent charge)

Three full days of work

Paying with a debit or credit card

Three days in the office

A standard order for three days of work

In a financial institution or cooperative building society

Three full days of work

Your nine-digit VAT registration number, which can be found on your online account or on your VAT registration certificate, is required for the majority of payment methods.

If you’re using online or telephone banking (Fast Payments, CHAPS, or Bacs) to pay your VAT bill, you can find the HMRC bank account details here.

Using a debit or credit card: You can use the links in your HMRC online account to pay using a debit or credit card.

From your HMRC online account, you can set up a Direct Debit. To ensure that the money is deducted from your account in a timely manner, do this at least three working days prior to filing your VAT return. Direct Debit payments will be collected from your account by HMRC three working days following the VAT return deadline.

A standing order: If your business uses the VAT Annual Accounting Scheme, you can set up a recurring payment for your VAT bill. Form VAT 622 or online or telephone banking can be used to set up this option when you first apply for the Annual Accounting Scheme.

Banks and building societies are great places to ask these questions. Ordering paying-in slips from HMRC and waiting up to six weeks for them to arrive is the only way to pay at a bank or building society. For payments, you can use the paying-in slips and provide your 9-digit VAT registration number followed by a check payable to “HM Revenue and Customs alone.”.

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Pre-VAT taxation levels

January 4, 2011, till the present day

The standard rate is 20%.

Rates are now 5% lower.

0% is the zeroth percentile of anything.

First to third week of Jan., 2011.

17.5 percent is the normal percentage.

Between Dec. 1 and Dec. 31 of this year.

15% is the industry average.

March 19, 1991 – November 30, 2008

17.5 percent is the average rate.

A period of time from June 18th, 1979 to March 18, 1991

15% is the industry average.

The previous VAT limits

From April 1st, 2017 to this day, $85,000 has been spent.

£83,000 was spent from April 1, 2016, to March 31, 2017.

A total of £82,000 was spent between April 1, 2015, and March 31, 2016.

Between 1st April and 31st March 2015, £81,000 was spent.

There was a total of £79,000 in revenue between April 1, 2013 and March 31, 2014.

£77,000 was spent from April 1, 2012, to March 31, 2013.

From April 1, 2010 to March 31, 2011, £70,000 was spent.

From May 1, 2009, through March 31, 2010, a total of £68,000 was spent.

During the period from April 1st, 2008 to March 30th, 2009, £67,000 was earned

From April 1, 2007 through March 31, 2008, $64,000 was spent.

£61,000 was spent from April 1, 2006, to March 31, 2007.

From April 1, 2005, to March 31, 2006, £60,000 was spent

From April 1st, 2004 to March 31st, 2005, £58,000 was earned.

From April 10th, 2003 to March 31st, 2004, $56,000 was spent

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From April 25th, 2002 until April 9th, 2003, $55,000 was spent.

a total of £54,000 from April 1, 2001 to April 24, 2002

Between April 1, 2000 and March 31, 2001, £52,000 was earned.

£50,000 from April 1, 1999, to March 31, 2000

£50,000 from April 1, 1998 to March 31, 1999

From December 1st, 1997 to March 31st, 1998, £49,000 was spent.

From November 27th, 1996, to November 30th, 1997, a total of £48,000.

From November 29th, 1995 to November 26th, 1996, $47,000.

From November 30th, 1994 until November 28th, 1995, $46,000.

From December 1st, 1993 to November 29th, 1994, $45,000 was spent.

£37,600 from the 17th of March to the 30th of November of 1993

Over the course of a year and a half, £36,600 was spent.

From the 20th of March 1991 until the 10th of March 1992, a total of £35,000 was spent.

a total of £25,400 was spent between the 21st March 1990 and the 19th March 1991.