Saturday, 9 April 2016
The registration and deregistration thresholds have increased from 1st April 2016
The taxable turnover threshold that determines whether a person or business must register for VAT increases from £81,000 to £83,000
The taxable turnover threshold that determines whether a person or business may apply for deregistration increases from £77,000 to £79,000
Flat Rate Scheme (FRS) limits
The taxable turnover thresholds have not changed here. Provided your taxable turnover is less than £150,000 you may apply to join the scheme. Once in FRS, you can stay in the scheme until your turnover reaches £230,000 for the year.
Why would you choose to account for VAT using FRS? It is because preparing your VAT figures is easy and quick and sometimes there is actually a financial benefit to you in accounting for VAT in this way compared to using other methods available. I can advise you if this is suitable for your business and so please call me if you would like to know more. I have many clients accounting for VAT in this way - if it is of benefit to them.