Value Added Tax

Standard rate
(7/47 of Vat inclusive amount)

17.5%
Registration level from 01/04/08 unless the turnover for the next year is not expected to exceed £65,000 £67,000 per annum
Deregistration level from 01/04/08 £65,000 per annum

It may be advantageous due to cash flow reasons to account for VAT on the basis of cash paid and received. This is known as the cash accounting scheme but can only be used if the next years taxable supplies are not expected to exceed £1,350,000. It must leave the scheme if taxable supplies exceed £1,600,000 unless the next years taxable supplies are expected to not exceed £1,350,000.

Scale charges (from 01/05/08)

The scale charges for private use of business fuel change to be based on the CO2 emissions of the car. For cars with CO2 emissions of 120g/km or less there is a 3 month charge of £117.45 net £20.55 VAT. A different charge will apply for each 5g/km increase between 135g/km (min) and 235 g/km (max). For a 3 month period:

135 and below £176.13 net £30.83 VAT
rising by per 5g/km approx* £ 11.92 net £2.08 VAT
235 or above £411.06 net £71.94 VAT

* Please click here to see exact figures table.

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