VAT Annual Accounting Scheme

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Eligibility

You can join the Annual Accounting Scheme if:

  • you鈥檙e a VAT-registered business
  • your estimated VAT taxable turnover is 拢1.35 million or less in the next 12 months

VAT taxable turnover is the total of everything sold that is not VAT exempt.

Exceptions

You cannot use the scheme if:

  • you left the scheme in the last 12 months
  • your business is part of a VAT registered division or group of companies
  • you鈥檙e not up to date with your VAT Returns or payments
  • you鈥檙e insolvent

Leaving the scheme

You must leave the scheme if:

  • you鈥檙e no longer eligible to be in it
  • your VAT taxable turnover is (or is likely to be) more than 拢1.6 million at the end of the annual accounting year
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