Posted by emmaandrews - November 27, 2017 11:02 am Autumn Budget 2017- VAT announcements

Prior to the recent budget there had been much debate regarding the current VAT registration threshold. There was speculation that the Chancellor of the Exchequer would reduce the threshold, perhaps drastically, based on core recommendations by the Office of Tax Simplification (OTS).

There was, however, no reduction to this announced and the VAT registration threshold will remain frozen at £85,000 for two years.

In response to the OTS’s recommendations, the government will consult on the design of the VAT registration threshold and its current effect on business behaviour. For businesses that are currently under the VAT threshold and are not voluntarily registered, a reduction in the threshold may have a drastic impact on business viability if that business is providing goods or services to the unregistered ‘general public’.

The Chancellor also announced that the OTS will continue to work with HMRC and HM Treasury on other VAT matters such as the Capital Goods Scheme, Option to Tax Land and Buildings, Partial Exemption rules and the system of Multiple VAT rates.

MFW are able to advise on how these may impact you. Please contact us if you have any concerns.