Value Added Tax
Registration thresholds
The registration threshold for VAT rises from £77,000 to £79,000 on 1 April 2013. The deregistration threshold rises from £75,000 to £77,000 on the same date. Self-assessment returns for businesses can use ‘three-line accounts’ if they are below the registration threshold.
Rates and scope
The standard rate of VAT will remain unchanged at 20% and the lower rate at 5%. After the storm of protest that met the proposed changes to a number of VAT reliefs last year, the Chancellor has not attempted to extend the scope of the tax to anything that is not currently chargeable.
Car fuel
The values to be used by a business which supplies road fuel to a proprietor, director or employee for private use change with effect for return periods starting on or after 1 May 2013. Although the scale rates are based on CO2 emissions, they are not based on a percentage calculation as the income tax benefit charges are: it is necessary to look up the exact figure in a table which is available on the HMRC website.