VAT notes – Budget special
HMRC has published a special ‘Budget Supplement’ edition of VAT notes which includes a summary of all the recently announced VAT Budget measures.
The main topics covered in the Budget edition of VAT notes are as follows:
- VAT registration / deregistration limits – The taxable turnover threshold, that determines whether businesses should be registered for VAT increased from £70,000 to £73,000 from 1 April 2011. The taxable turnover threshold that determines whether businesses can apply for deregistration were increased from £68,000 to £71,000 on the same date.
- VAT fuel scale charges – The new VAT fuel scale charges have been published and must be used by companies from the start of their next prescribed accounting period beginning on or after 1 May 2011.
- Finance Bill 2011 – Three new pieces of previously announced VAT legislation will be introduced as part of the Finance Bill 2011. The legislation concerns VAT costs incurred by academies, changes in the treatment of business samples and tackling VAT zero rating tax avoidance.
- Finance Bill 2012 and beyond – A number of other measures relating to VAT grouping, VAT treatment of public bodies, VAT fraud on imported vehicles, compulsory online VAT registration, online filing of VAT returns and the cost-sharing exemption are also briefly covered in the Budget supplement.