Autumn Budget 2017

VAT


VAT Registration

Perhaps bowing to pressure from small businesses, the Chancellor chose not to reduce the VAT registration threshold. Instead, a consultation will take place to look at the design of the threshold and how it works in practice.

A commitment was made to keep the VAT registration threshold at its current level of £85,000 until March 2020.  This is extremely good news to many small businesses whose profits would be hit hard if they were forced to register for VAT.

It is acknowledged that the £85,000 threshold causes distortion in the market because some businesses choose to restrict their business growth so they can remain just under the threshold. This is the type of issue that the consultation will look at.

 

Other VAT Changes

Accident rescue charities will have access to a grant scheme to compensate them for the VAT they pay on expenses which they are unable to recover.

A consultation is planned to look at how VAT is accounted for on vouchers, to bring the UK in line with the EU.

Also, following a consultation on lost VAT in the construction sector, HMRC plans to introduce a reverse charge scheme where the customer rather than the supplier accounts for VAT on certain supplies of construction.  However, this is not expected to come into effect until October 2019.

 

Alcohol Duties

Only strong cider and perry (those with an ABV of 6.9%-7.5%) will see a duty increase. Further consultation is to be done on this with a view to increasing the duty rate from 2019.

 

Tobacco

Tobacco duty will increase by 2% above RPI inflation, except hand rolling tobacco which will increase by 1% above RPI.

 

 

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Oct 23

No events today
Dodd & Co have been extremely helpful and supportive from the first meeting we had with them.  After being left in a mess by our previous accountants they stepped in and sorted everything out, from broader business planning to the finer details, with no fuss and kept us informed along the way. They deal with all tasks quickly and efficiently, without prompting from us which has been a huge weight off our shoulders.  The support, advice and service we have received from Alison, Tony and the team at Dodds has far exceeded any expectations we had.  We wouldn't hesitate to recommend them.
-- Gemma Bell, Vincent & Bell Limited