Source: HM Revenue & Customs | 31/10/18
The Chancellor confirmed in his Budget speech that the taxable turnover threshold that determines whether businesses should be registered for VAT, will be frozen at £85,000 for a further 2 years from 1 April 2020 until 31 March 2022. The taxable turnover threshold that determines whether businesses can apply for deregistration will also be frozen at the current rate of £83,000 for the same time period.
Businesses are required to register for VAT if they meet either of the following two conditions:
The Chancellor was clear that the government had explored various options to address the cliff edge effect of VAT registration. This followed the publication of an Office of Tax Simplification report recognising the distortions the threshold causes and recommending the government review this area of tax. The ability to allow small businesses to stay outside the VAT system has many benefits, but there are concerns of the gap between businesses that have to charge VAT against those that do not. HM Treasury will continue to examine this issue, but the Chancellor has provided certainty for the time being on the VAT thresholds for the next number of years.
With our newsletter, you automatically receive our latest news by e-mail and get access to the archive including advanced search options!
Some accountancy websites also provide pages and pages of tax information, helpsheets, etc. We prefer to give clients personally tailored advice. So, if you want details of tax rates and allowances just go to the HMRC website on which you should find what you’re looking for. If you need more individual advice please contact us.
Below are links to websites you may find of interest, but as we like to support our local community and clients, we have included links to websites that may be of interest: