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Specialist Ophthalmic AccountantChartered AccountantsChartered Accountants

VAT Full Cost Apportionment

  • Do you need to complete a full cost apportionment calculation?
  • Do you feel that you are paying too much VAT and that your standard rated proportion is too high?
  • Do you need assistance in completing your partial exemption calculations and VAT returns on a quarterly basis?

If you have answered YES to the questions above then we would suggest that you telephone Desirie Lea on 0151 348 8400 or email to see how we can help you.

There have been a number of legal cases over the past 10 years regarding the supply of spectacles by Opticians. The debate has revolved around whether or not there is a single supply made by opticians upon the sale of a pair of spectacles, in which case there would be a single rate of VAT (i.e. 20%) or a mixed supply, leading to a reduced rate of VAT on the eventual sale.

The supply of spectacles is now held to be a mixed supply, as follows:-

Dispensing element - Exempt from VAT
Frames and lenses - Standard rated VAT.

Accessories sold as part of the total supply, such as chains, cases etc - Standard rated VAT.

Sight tests, whether private or under the NHS remain exempt from VAT.

The question arises, as to how to calculate the proportion of sales deemed to be at the standard rate for each pair of spectacles sold. In most cases this requires a full cost apportionment calculation. As accountants who specialise in Opticians, we are able to calculate the relevant proportion based on your figures and obtain agreement from H M Customs and Excise on your behalf. We will ensure that all costs are included in the calculation to ensure we get the very best deal for you. We have been very successful in negotiating with H M Revenue and Customs and have saved our clients tens of thousands of pounds in VAT.

We can complete your full cost apportionment calculations. We base our fees on a fixed fee structure and do not charge you a % of the VAT recovered. This will save you £££. Our fees are competitive. There are additional charges for any work done in recalculating overpayments for submission to H M Revenue and Customs.

Another frustration for opticians is having to carry out full partial exemption calculations each quarter in order to determine whether or not their exempt input VAT is within the
de-minimus limits and recoverable in full.

We can also complete your quarterly VAT returns including partial exemption calculations and an annual adjustment calculation. Our fees start as little as £100 + vat per return.

Morris & Co have a dedicated team specialising in VAT and ophthalmic accounts and are able to provide advice and guidance on all aspects of financial accounting, taxation including partial exemption & business matters.

For a FREE no obligation chat about your circumstances Contact Desirie Lea on 0151 348 8400 or email


  • "Over a number of years Morris & Co have provided me with sound financial and business advice. Their in depth knowledge of my particular sector has proved invaluable and they explain my accounts in a way that is easy to understand. All my questions are answered promptly and efficiently and I really appreciate their level of expertise."
    David Evans, R T Booth & Co Ltd
  • "When appointing an accountant it was very important to me to select someone who was not only knowledgeable but friendly and approachable. I have always received proactive, professional advice and I know that the specialist advice I require to run my business is only ever a phone call away. A VAT full cost and apportionment calculation was recently undertaken for my company. As a result of this, my percentages have reduced, thereby saving me additional money."
    Ian McGarvey, Ian McGarvey Opticians Ltd
  • "Having had dealings with Desirie Lea of Morris and Co from the very inception of my company, I have always been impressed with how approachable everyone has been, from the partners to the receptionists. I had spoken to several accountants before instructing Desirie to take charge of my accounts, and from the first phonecall, Desirie impressed me with her forthright manner and her perceptive analysis of various scenarios I put to her. She is always on the ball and is a pleasure to deal with."
    Lloyd Griffiths, Lloyd Griffiths Limited
  • "Desirie and her team have been acting on my behalf since 2002 and I am delighted with the service they provide. As specialists in the ophthalmic sector, they are able to take away the stress of dealing with the partial exemption calculations for VAT purposes, which is a real bonus. I have regular meetings with them at my premises to discuss strategic issues and plan for the future. Management accounts are prepared on a quarterly basis for my company which includes a detailed analysis/commentary of my trading results. I would have no hesitation in recommending the services of Morris and Co to my fellow professionals."
    Anne O'Loan, Niluain Ltd

Contact Desirie Lea on:

0151 348 8400 or email for a FREE no-obligation discussion and for information about how we can assist you in undertaking a full cost apportionment or completing your VAT returns.