2018 Autumn Budget - VAT
The following is a summary of the 2018 Autumn Budget in relation to VAT.
To return to the full summary click here.
VAT Thresholds
The VAT registration threshold of £85,000 and deregistration threshold of £83,000 will remain unchanged for the next 2 years.
This will be a welcome announcement with Making Tax Digital (MTD) for VAT registered businesses commencing in April 2019. This is particularly important for businesses near the current registration threshold, as they continue to fall outside the scope of MTD.
Treatment of vouchers from 1 January 2019
Businesses issuing single-purpose vouchers will account for VAT on issue and not redemption. Multi-purpose vouchers will have VAT due on redemption of those vouchers and not on issue. This means that businesses dealing with the buying and selling of multi-purpose vouchers will not be able to claim VAT on the costs of that activity.
Reverse charge for the Construction Sector
From 1 October 2019, the reverse charge will apply to the supply of services within the construction industry.
This is to combat ‘Missing Trader’ fraud and is similar to the reverse charge that applies to subcontractors operating in the Republic of Ireland.
To return to the full summary click here.
A PDF version is available to download here.
Rates and Allowances tables are available to download here.
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