GBUK standard rate
20%
UK threshold
£90,000
HMRC interest
7.75%
UK rules checked
4 October 2026

VAT news

What changed, when, and what it means for a UK small business. Each story is dated and links to the calculator or guide that helps.

Stone columns of a financial building in the City of London on a grey morning

News ·

Bank Rate held at 3.75%: HMRC interest on late VAT stays at 7.75%

The Bank of England held Bank Rate at 3.75% on 17 September 2026, so HMRC late payment interest on VAT stays at 7.75%. Repayment interest stays at 2.75%. On £10,000 of VAT paid 30 days late, the interest is £63.70.

A supplier invoice on a clipboard with a magnifying glass beside a laptop

News ·

How to check a VAT number, UK or EU

A UK VAT number is GB followed by 9 digits. You can check it free with HMRC's "Check a UK VAT number" service on gov.uk. Check EU numbers on the European Commission's VIES service. Do it before you pay a new supplier.

Bread, cheese, eggs and vegetables on stalls at a summer food market

News ·

Ireland, Austria and Latvia cut VAT on food from July 2026

Ireland cut VAT on food from 13.5% to 9% on 1 July 2026, and Austria and Latvia cut theirs the same day. Austria added a 4.9% rate for basic foods, and Latvia cut bread, milk, poultry and eggs from 21% to 12%. UK consumer sellers must update their rates.

A tray of paper invoices next to a laptop showing structured data

News ·

UK e-invoicing from April 2029: what is known so far

UK business-to-business and business-to-government invoices will have to be e-invoices from April 2029, the government announced on 26 November 2025. It is not yet law and the technical detail has not been published, so no business has to do anything yet.

A company car parked on an industrial estate at dawn

News ·

Fuel scale charges 2026/27: a 140g/km car now costs £294 a quarter

HMRC's 2026/27 road fuel scale charges apply to VAT periods starting on or after 1 May 2026. A car at 140g/km now carries a quarterly charge of £294, which includes £49.00 of VAT. HMRC published the new tables on 17 April 2026.

A landlord's kitchen table with a laptop, house keys and a folder of receipts

News ·

Making Tax Digital for Income Tax has started: how it sits alongside MTD for VAT

Making Tax Digital for Income Tax started on 6 April 2026 for sole traders and landlords with qualifying income over £50,000. MTD for VAT is unchanged, so a VAT-registered sole trader over that figure now has both. The income threshold falls to £30,000 in April 2027.

Root vegetables, rye bread and dairy in a Scandinavian grocery shop

News ·

Sweden cuts VAT on food from 12% to 6%

Sweden cut its VAT rate on food from 12% to 6% on 1 April 2026, until 31 December 2027. Restaurant and catering services stay at 12% and the standard rate stays at 25%. UK sellers shipping food to Swedish consumers through IOSS must now charge 6% on eligible lines.

A wall calendar above a small business desk in spring light

News ·

VAT in the 2026/27 tax year: what changed on 1 April and what did not

UK VAT rates stay at 20%, 5% and 0% for the 2026/27 tax year. The £90,000 registration threshold has not moved since 1 April 2024. The changes are smaller: a new relief for donating goods to charity, taxis leaving the margin scheme, and MTD for Income Tax starting.