VAT Rate at 2020-21
The VAT registration limit has increased to £85,000 and the de-registration limit increased to £84,000.
The standard rate of VAT increased from 17.5 per cent to 20 per cent on 4 January 2011.
For any sales of standard-rated goods or services that you made on or after 4 January 2011 you should have charged VAT at the 20 per cent rate. If you have a cash business and calculate your VAT using the VAT fraction you nust use the VAT fraction of 1/6 on your standard-rated VAT inclusive sales from 4 January 2011.
The change only applies to the standard VAT rate. There are no changes to sales that are zero-rated or reduced-rated for VAT. Similarly, there are no changes to the VAT exemptions. Any sales you make at these rates are unaffected by this change.