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ACCA Strategic Professional · Advanced Taxation (UK) · Tax administration and the UK tax system

Zephyr Ltd is a UK trader making wholly standard-rated supplies. Using the rates and limits given in the ATX-UK tax tables for the June 2026 to June 2027 exams, which statement correctly gives the VAT registration limit and the standard rate of VAT?

The VAT registration limit is £90,000 and the standard rate is 20%. The figure of £88,000 is the deregistration limit, not the registration limit, so it is wrong for the registration question asked here.

  1. ARegistration limit £85,000 and standard rate 20%
  2. BRegistration limit £90,000 and standard rate 20%Correct
  3. CRegistration limit £90,000 and standard rate 17.5%
  4. DRegistration limit £88,000 and standard rate 20%

Explanation

The tables give a registration limit of £90,000 and a standard rate of 20%. The £88,000 figure is the deregistration limit, so using it for registration confuses the two thresholds.

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