HMRC has published the latest quarterly edition of VAT notes which includes a summary of recent changes and important notices announced as part of the Budget.
The main topics covered in the latest edition are as follows:
- VAT registration / deregistration limits – The taxable turnover threshold, that determines whether businesses should be registered for VAT increased from £79,000 to £81,000 from 1 April 2014. The taxable turnover threshold that determines whether businesses can apply for deregistration was increased from £77,000 to £79,000 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 2014.
- New reverse charge for gas and electricity – The Government announced that it will legislate for a reverse charge on wholesale supplies of gas and electricity in order to prevent missing trader intra community fraud. Supplies for consumption will not be affected and sector representatives are being consulted on timing.
- Prompt Payment Discounts – New legislation will be introduced in Finance Bill 2014 to amend UK VAT legislation on prompt payment discounts to ensure that UK and EU law are clearly aligned so that VAT is accounted for on the full consideration paid for goods and services where prompt payment discounts are offered.