VAT Annual Accounting Scheme
Eligibility
You can join the Annual Accounting Scheme if:
- you’re a VAT-registered business
- your estimated VAT taxable turnover is £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’re not up to date with your VAT Returns or payments
- you’re insolvent
Leaving the scheme
You must leave the scheme if:
- you’re no longer eligible to be in it
- your VAT taxable turnover is (or is likely to be) more than £1.6 million at the end of the annual accounting year