Value Added Tax (VAT)

A person who is registered to charge VAT in the course of a business carried on in the UK charges VAT on the taxable supply of goods and services. They are able to claim the VAT back on the business expenses incurred.

There are currently three rates of VAT, being the zero rate, standard rate (17.5%) and the special rate (5%) for domestic supplies of power and fuel.

Quarterly VAT returns must be completed and submitted to HM Revenue & Customs with any payments of VAT being made to them or repayments claimed from them. Small business can opt for annual accounting of VAT rather than quarterly.