Last updated 01/04/24

UK VAT rates and thresholds for 2024/25

UK VAT rates and thresholds for 2024/25
Standard rate
This rate of VAT applies to most goods and services.
Reduced rate
This rate of VAT applies to certain goods and services, including children’s car seats and home energy.
Zero rate
This rate of VAT applies to certain goods and services, including children’s clothes and most food items.

VAT: what you need to know

VAT is short for 'Value Added Tax'. It's a tax on the sale of most goods and services. You can find out more about VAT on our accounting glossary.

The VAT registration limit

The current VAT registration limit is £90,000. Businesses and individuals must register for VAT once they have exceeded, or expect to pass their respective thresholds which are based on their VAT Taxable Turnover. You can find out more about when you need to register for VAT in our dedicated guide.

For more information on the VAT rate that applies to you, you can also check out our guide to the different rates of VAT.

Example: how to calculate how much VAT you owe

A self-employed graphic designer is calculating how much VAT they owe to HMRC. Their business is registered for VAT and the services they sell are subject to VAT at the standard rate of 20%.

They invoice their customer for services at an agreed price of £2,000 + VAT.

£2,000 + (£2,000 x 20%) = £2,400

They will keep £2,000 of this for their business, but the £400 VAT belongs to HMRC and they will need to include this on their next VAT return.

How to pay your VAT bill

For most types of payment you’ll need your 9-digit VAT registration number, which can be found on your online account or your VAT registration certificate.

Online or telephone banking (Faster Payments) Same or next day
CHAPS Same or next day
Bacs Three working days
Debit card Three working days
Business credit card (1.5% charge, personal credit cards are no longer accepted) Three working days
Direct Debit Three working days
Standing order Three working days
At your bank or building society Three working days

Online or telephone banking: If you’re paying by online or telephone banking (Faster Payments, CHAPS or Bacs) details for the HMRC bank account you should pay your tax bill into on the government's website.

Debit or credit card: If you are paying by debit or credit card you can do so by following the links from your HMRC online account.

Direct Debit: You can set up a Direct Debit from your HMRC online account. Make sure you do this at least three working days before you submit your VAT return to ensure the payment is taken from your account in time. Once the Direct Debit is set up, HMRC will collect payments from your account three working days after the deadline on your VAT return.

Standing order: If your business uses the VAT Annual Accounting Scheme you can pay your VAT bill by standing order. You can set this up when you first apply for the Annual Accounting Scheme or later by using form VAT 622 or via online or telephone banking.

At your bank or building society: To pay at your bank or building society you’ll need to order paying-in slips from HMRC which can take up to six weeks to arrive. Using the paying-in slips you can pay by cash or a cheque made payable to ‘HM Revenue and Customs only’ followed by your 9-digit VAT registration number.

Previous VAT rates

4th Jan 2011 to today
Standard rate 20%
Reduced rate 5%
Zero rate 0%
1st Jan 2010 to 3rd Jan 2011
Standard rate 17.5%
1st Dec 2008 to 31st Dec 2009
Standard rate 15%
19th Mar 1991 to 30th Nov 2008
Standard rate 17.5%
18th Jun 1979 to 18th Mar 1991
Standard rate 15%

Previous VAT thresholds

From 1st Apr 2024 to today £90,000
From 1st Apr 2017 to 31st Mar 2024 £85,000
From 1st Apr 2016 to 31st Mar 2017 £83,000
From 1st Apr 2015 to 31st Mar 2016 £82,000
From 1st Apr 2014 to 31st Mar 2015 £81,000
From 1st Apr 2013 to 31st Mar 2014 £79,000
From 1st Apr 2012 to 31st Mar 2013 £77,000
From 1st Apr 2010 to 31st Mar 2011 £70,000
From 1st May 2009 to 31st Mar 2010 £68,000
From 1st Apr 2008 to 30th Mar 2009 £67,000
From 1st Apr 2007 to 31st Mar 2008 £64,000
From 1st Apr 2006 to 31st Mar 2007 £61,000
From 1st Apr 2005 to 31st Mar 2006 £60,000
From 1st Apr 2004 to 31st Mar 2005 £58,000
From 10th Apr 2003 to 31st Mar 2004 £56,000
From 25th Apr 2002 to 9th Apr 2003 £55,000
From 1st Apr 2001 to 24th Apr 2002 £54,000
From 1st Apr 2000 to 31st Mar 2001 £52,000
From 1st Apr 1999 to 31st Mar 2000 £51,000
From 1st Apr 1998 to 31st Mar 1999 £50,000
From 1st Dec 1997 to 31st Mar 1998 £49,000
From 27th Nov 1996 to 30th Nov 1997 £48,000
From 29th Nov 1995 to 26th Nov 1996 £47,000
From 30th Nov 1994 to 28th Nov 1995 £46,000
From 1st Dec 1993 to 29th Nov 1994 £45,000
From 17th Mar 1993 to 30th Nov 1993 £37,600
From 11th Mar 1992 to 16th Mar 1993 £36,600
From 20th Mar 1991 to 10th Mar 1992 £35,000
From 21st Mar 1990 to 19th Mar 1991 £25,400

Disclaimer: The content included on this page is based on our understanding of tax law at the time of publication. It may be subject to change and may not be applicable to your circumstances, so should not be relied upon. You are responsible for complying with tax law and should seek independent advice if you require further information about the content included on this page. If you don't have an accountant, take a look at our directory to find a FreeAgent Practice Partner based in your local area.

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