Skip to main content Skip to search

VAT return in the UK

VAT return in the UK

In the event that the turnover of a company operating in the UK exceeds GBP 85 000.00 during the tax year, its owner is obliged to register it as a VAT payer in Inland Revenue. There is also the possibility of voluntary registration even in a situation when the company’s turnover is not higher than the set threshold (provided that the given entity is active).


VAT settlements in the Engand
To register as a VAT payer, it is necessary to fill in a specially created declaration (VAT1) and then transfer it to the British tax office (HM Revenue and Customs). In most cases, the form is considered within a month, but there are deviations from this rule and sometimes you have to wait longer. VAT Returns should take place at least once every three months.
The main advantage of registration is the ability to apply for a refund of input VAT on purchases that were made by the company. This can happen when the value of input tax is higher than the value of VAT due – otherwise you will have to pay a certain amount at the tax office. It is also very beneficial in relations with business partners who, like us, are also registered as VAT payers – then the prices of their services may be much lower. The company also has the option of purchasing throughout the European Union at zero rate. Of course, a certain disadvantage of this system is the need to settle and submit declarations, but in this field, you may get help from our accountancy office PolAccount.
VAT rates in the UK
The standard VAT rate is 20% and covers most goods and services in England; in addition, there are also rates:

  • 5% – covering for example fuels, electricity, car seats for children, energy-saving materials,
  • 0% – which applies, inter alia, to food, books, newspapers and children’s clothing.

It is possible to be exempt from VAT in the case of insurance, rental of buildings, health services or education.


We settle VAT at attractive prices
PolAccount offers assistance in contacting the HMRC, registering the company as a VAT payer, as well as preparation of quarterly tax settlements and submission of declarations to the statistical office. As topic experts and qualified accountancy office in London, we are able to provide comprehensive and fully professional services that meet the expectations of the most demanding customers.