Value Added Tax
| From |
1 April 2008 |
1 April 2007 |
| Standard rate |
17.5% |
17.5% |
| VAT fraction |
7/47 |
7/47 |
| |
Turnover |
Turnover |
| Registration |
last 12 months or next 30 days over |
£67,000 |
£64,000 |
| Deregistration |
next 12 months under |
£65,000 |
£62,000 |
| Cash accounting scheme |
up to |
£1,350,000 |
£1,350,000 |
Annual
accounting scheme |
up to |
£1,350,000 |
£1,350,000 |
| Optional flat-rate scheme |
up to |
£150,000 |
£150,000 |
|
Option to tax land and buildings
Legislation will be introduced for simplification of the option to tax land
and/or buildings. It will also introduce minor changes to enable taxpayers to
revoke an option to tax after 20 years and make a number of associated changes
to improve practical administration of the option to tax.
The rewritten legislation will have effect on and after 1 June 2008. The
earliest date an option to tax will be revocable will be 1 August 2009.
Indirect tax returns: correction of errors
Businesses registered for VAT, insurance premium tax (IPT), air passenger
duty (APD), landfill tax (LFT), climate change levy (CCL) and aggregates levy
(AGL) will have increases to the limit below which errors on previous returns
may be corrected on the return for the period in which the errors are
discovered. This measure will have effect for accounting periods commencing on
or after 1 July 2008.
This measure increases the de minimis £2,000 limit to the greater of £10,000
or 1% of turnover, subject to an upper limit of £50,000 for VAT, IPT, LFT, CCL
and AGL. For VAT, LFT, CCL and AGL errors above £10,000, the limit for
correcting errors on the next return will be calculated by reference to net VAT
turnover (Box 6 on VAT return) for the return period.
For IPT, this limit will be calculated by reference to the net IPT turnover
(Box 10 on IPT return). APD procedures will be amended to increase the de
minimis limit to the greater of £10,000 or 1% of duty due, before adjustments
for errors from previous periods, subject to an upper limit of £50,000. For LFT,
CCL and AGL taxpayers who are not required to be registered for VAT a single
limit of £10,000 will have effect.
|
