These are known as outside the scope supplies. Supplies which are exempt from VAT do not form part of your taxable turnover. If you are registered for VAT and have some exempt supplies you may not be able to get all your input tax back. The government is planning to raise these turnover limits for cash and annual accounting to 600,000 from April 2001. They can answer any questions you have on VAT, whether or not you are already registered.
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