Value Added Tax – Budget Report 8 March 2017
Value Added Tax
| From | 1 April 2017 |
|---|---|
| Standard rate | 20% |
| VAT fraction | 1/6 |
| Reduced Rate | 5% |
| Current Turnover Limits | |
| Registration – last 12 months or next 30 days over | £85,000 from 1 April 2017 |
| Deregistration – next 12 months under | £83,000 from 1 April 2017 |
| Annual and Cash Accounting Schemes | £1,350,000 |
| Flat Rate Scheme | £150,000 |
VAT Flat Rate Scheme
As announced in the Autumn Statement 2016, there will be a new 16.5% rate from 1 April 2017 for businesses with limited costs, such as many labour-only businesses.
Anti-forestalling provisions have been introduced to prevent any business defined as a limited cost trader from continuing to use a lower flat rate beyond 1 April 2017.