VAT

VAT (Value Added Tax) is a tax added to most goods and services sold in the UK. Businesses charge it on sales and pay it to HMRC

You must register if your taxable turnover (sales before VAT) is over £90,000 in the past 12 months. You can also register voluntarily if it’s below that

• There are three main rates:
  • Standard rate – 20% (most goods and services)
  • Reduced rate – 5% (some items like home energy or children’s car seats)
  • Zero rate – 0% (food, books, children’s clothes)

Usually every 3 months (quarterly). You report how much VAT you’ve charged and how much you’ve paid on business costs