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Which tax code should I use? - from 1 January 2021 (UK only)

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Summary

This guide explains what tax code to use for sales of an asset when you don't charge VAT.

Description

Based on the information you've given us, we recommend you use the following tax codes depending on the VAT rate you're applying.

Zero rate - 0%

Which tax code to use T0
How this affects your VAT Return

Standard and VCA schemes:

The net amount appears in box 6.

Flat rate schemes:

The flat rate percentage of the gross amount appears in box 1.
The gross amount appears in box 6.

VAT exempt -  0%

Which tax code to use T2
How this affects your VAT Return

Standard and VCA schemes:

The net amount appears in box 6.

Flat rate schemes:

The flat rate percentage of the gross amount appears in box 1.
The gross amount appears in box 6.

Non-vatable

Which tax code to use T9
How this affects your VAT Return

This doesn't affect the VAT Return.

 TIP: Unsure which rate to apply? Read more >

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This article offers general guidance only. While accurate at the time of publication, it may not suit your specific needs. We make no express or implied warranties. For tailored advice, consult a professional. For VAT, customs, or duties queries, contact HMRC on 0300 200 3700 or visit www.hmrc.gov.uk. We accept no liability for any loss from using this content. VAT or tax codes shown reflect default software settings and may differ in your setup.