UK Business Tax

For information only - please contact us if you have a question.

VAT Rates

For information only - please contact us if you have a question.

VAT rates for goods and services
Rate                                     % of VAT         What the rate applies to
Standard                              20%                Most goods and services
Reduced rate                       5%                  Some goods and services, eg children’s car seats and                                                                          home energy
Zero rate                             0%                  Zero-rated goods and services, eg most food and                                                                                  children’s clothes


The standard rate of VAT increased to 20% on 4 January 2011 (from 17.5%).

Corporation Tax rates

For information only - please contact us if you have a question.

The rate of Corporation Tax you pay depends on how much profit your company makes.

Rates for Corporation Tax years starting 1 April
Rate                                                                    2020           2019          2018          2017          2016

Main rate (all profits except ring fence profits)    19%           19%           19%            19%           20%
Special rate for unit trusts and open-ended
investment companies                                         20%           20%            20%           20%           20%

VAT Threshold

When to register

You must register when you go over the threshold, or know that you will. The threshold is based on your VAT taxable turnover - the total of everything sold that isn’t VAT exempt.

You must register for VAT if your VAT taxable turnover is more than £85,000 (the ‘threshold’) in a 12 month period or you expect to go over the threshold in a single 30 day period.

You’ll also need to register if you only sell goods or services that are exempt from VAT or ‘out of scope’ but you buy goods for more than £85,000 from EU VAT-registered suppliers to use in your business.

You may have to register for VAT if you take over a business that’s already registered.

You must register within 30 days of your business turnover exceeding the threshold. If you register late, you must pay what you owe from when you should have registered. You may get a penalty depending on how much you owe and how late your registration is.

You can register voluntarily if your business turnover is below £85,000. You must pay HMRC any VAT you owe from the date they register you.