Online Test Banks
Score higher
See Online Test Banks
Learning anything is easy
Browse Online Courses
Mobile Apps
Learning on the go
Explore Mobile Apps
Dummies Store
Shop for books and more
Start Shopping

Knowing Your UK Tax Codes

Part of the Sage 50 Accounts For Dummies Cheat Sheet

Even if you don’t need to use all of the tax codes all of the time, you probably need some of them sometimes. For those times:

  • T0: Zero-rated. VAT is not payable on zero-rated supplies. Examples of this include books, children’s clothes and some items of food.

  • T1: Standard rate. Currently 20 per cent.

  • T2: Exempt from VAT. For example, postage stamps.

  • T4: Sales to customers in the European Union (EU).

  • T5: Lower-rate VAT, usually 5 per cent. Applies to the purchase of energy-saving materials and, for example, reclaiming VAT on DIY building work.

  • T7: Zero-rated purchases from suppliers in the EU.

  • T8: Standard-rated purchases from suppliers in the EU.

  • T9: Transactions not involving VAT. For example, wages.

blog comments powered by Disqus

Sage 50 Accounts For Dummies Cheat Sheet


Inside Sweepstakes

Win $500. Easy.