Budget 2013: VAT announcements
The good news is that there was very little in this year’s Budget to worry VAT practitioners or VAT-registered businesses.
There was, of course, the usually annual uprating of thresholds from 1 April 2013:
- The registration threshold goes up from £77,000 to £79,000
- The de-registration threshold goes up from £75,000 to £77,000
The new VAT threshold also sets the limit for three-line accounting for the self-employed on self assessment tax returns and for the new simplified bash basis accounting, which is available from 2013-14.
A new table of VAT fuel scale charges has been published and will apply to VAT accounting periods beginning on or after 1 May 2013. Charges have been increased by roughly 1.2%.
More details are available from HMRC's Budget 2013 indirect taxes and VAT page.
Register for free with AccountingWEB and log in to see a run-down of more substantial VAT proposals for further consultation on legislation for a future Budget. These include:
1. EU place of supply
2. Review of the Retail Export Scheme (tax free shopping)
3. Changes to zero-rating of exports from the UK
4. VAT treatment of refunds made by manufacturers
5. VAT refunds for the Health Research Authority and Health Education England
6. Extension of the education exemption to for-profit providers of higher education
7. Withdrawal of VAT exemption for research
Sign up for Rebecca Benneyworth's detailed analysis explaining how key meaures will affect ordinary businesses.