VAT Breakdown
| VAT Scheme | Entry Threshold | Best Suited For | Main Advantage |
|---|---|---|---|
| Standard Accounting | None (mandatory at £90k) | Retailers / point-of-sale businesses | Simple real-time tracking |
| Cash Accounting | Turnover under £1.35m | B2B firms with slow-paying clients | No VAT owned until client pays |
| Flat Rate Scheme | Turnover under £150k | Micro businesses with low expenses | Extremly simplified paperwork |
| Annual Accounting | Turnover under £1.35m | Businesses seeking predictable cash flow | Only one VAT return per year |
If as a business, you sign a contract or expect to make over £90,000 in a single 30-day period, you must register for VAT immediately.