ACCA Taxation F6 Practice Exam 2025 – Complete Study Resource

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What is the VAT registration threshold for businesses in the UK?

£75,000 in taxable turnover

£85,000 in taxable turnover

In the UK, the VAT registration threshold is set at £85,000 in taxable turnover. This means that if a business's taxable turnover exceeds this amount in a 12-month period, it is required to register for Value Added Tax (VAT). The threshold is reviewed periodically, and it reflects the government's policy to maintain a balance between ensuring compliance while not overburdening small businesses.

When a business reaches this threshold, it must charge VAT on its taxable sales, keep proper VAT records, and submit VAT returns. This requirement aims to ensure that businesses contribute to public finances through the VAT system, which is an important source of revenue for the government.

Understanding the VAT registration threshold is crucial for businesses to avoid penalties for non-registration and ensure compliance with tax obligations.

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£95,000 in taxable turnover

£100,000 in taxable turnover

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