Henton & Co LLP - Accountancy

▌ Value Added Tax

	From 1.4.2007	From 1.4.2006
Standard Rate	17.5%	17.5%
Fuel and Power Rate	5%	5%
Installation of energy saving material	5%	5%
VAT on fraction of gross price	7/47	7/47
Annual Turnover Limits (based on previous 12 months)
Registration	£64,000	£61,000
Deregistration	£62,000	£59,000

The annual accounting scheme is allowed if annual turnover is not expected to be above £1,350,000 Withdrawal from the scheme must be made if annual turnover reaches £1,600,000 A flat rate of VAT can be paid by small businesses. The rate is applied to turnover and varies dependant on the sector in which the business operates.