VAT, or Value Added Tax is a tax charged to most businesses and consumers who purchase goods and services. Our table below shows the main VAT rates currently in use:-
| Rate: | Percentage: |
| Standard Rate * | 17.5% |
| Reduced Rate | 5% |
| Zero Rate | 0% |
* The Standard Rate of VAT was reduced to 15% on the 1st of December 2008. This remained at 15% until 31st December 2009 then reverted back to the normal standard rate percentage of 17.5%.
If you own a business you should be aware that there are registration limits in place where if a certain amount of turnover is exceeded you are required to register for VAT.
| From 1st April 2008 Registration Limit | Turnover exceeds £67,000 |
| From 1st April 2008 De-Registration Limit | Turnover below £65,000 |
Please also bear in mind that these limits are assessed on a twelve month rolling basis so we would suggest that you put in place some method of continually checking if VAT registration is necessary.
This is only a very basic guide to general VAT. For a more detailed resource please visit HMRC : Introduction to VAT.
We have also put a very basic VAT calculator below which we hope you will find useful 
