Budget Summary 2011
Introduction
Income Tax
Tax Credits and Benefits
National Insurance
Employees
Savings and Investment
Capital Gains Tax
Inheritance Tax
Corporation Tax
Business Tax
Value Added Tax
Stamp Duty Land Tax
Other Measures
Income Tax Rates and Allowances
National Insurance Contributions
| Value Added Tax
Registration thresholds
The registration threshold for VAT rises from £70,000 to £73,000 on 1 April 2011. The deregistration threshold rises from £68,000 to £71,000 on the same date. Self-assessment returns for businesses can use "three-line accounts" if they are below the registration threshold.
Rates and scope
The standard rate of VAT will remain unchanged at 20%, and there are no changes to the list of taxable, exempt and zero-rated supplies. The values to be used by a business which supplies road fuel for private use change for return periods starting on or after 1 May 2011. Although the scale rates are based on CO2 emissions, they are not based on a percentage calculation as the income tax benefit charges are: it is necessary to look up the exact figure in a table which is available on the HMRC website.
Low value consignment relief
Imports from outside the EU which arrive by post are free of VAT (as well as customs duty) if they cost less than £18. This is exploited by businesses which supply a range of goods (e.g. DVDs, CDs) by post from the Channel Islands and other places. It is proposed to lower the limit to £15 with effect from 1 November 2011. The government will discuss possible ways of tightening the rules with the European Commission, and may lower the limit further if a way cannot be found to close what is clearly regarded as an unacceptable loophole.
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