{"id":4410,"date":"2024-03-07T01:03:20","date_gmt":"2024-03-07T01:03:20","guid":{"rendered":"https:\/\/magnumaccountancy.com\/?p=4410"},"modified":"2024-03-07T01:03:20","modified_gmt":"2024-03-07T01:03:20","slug":"vat-registration-threshold-to-increase","status":"publish","type":"post","link":"https:\/\/magnumaccountancy.com\/vat-registration-threshold-to-increase","title":{"rendered":"VAT registration threshold to increase"},"content":{"rendered":"
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Among the indirect tax Budget announcements is the increase to the VAT registration threshold from 1 April 2024. A new duty on vaping products will also be introduced as well as changes to airport passenger duty and landfill tax rates. <\/p>\n
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The headline announcement for indirect taxes is that the VAT registration threshold<\/a> will increase from \u00a385,000 to \u00a390,000 from 1 April 2024. This is the first increase to the threshold since it was frozen with effect from 1 April 2017. <\/p>\n The deregistration threshold<\/a> will also increase from \u00a383,000 to \u00a388,000. <\/p>\n HMRC estimates that this change will benefit over 28,000 businesses which will no longer have to be VAT-registered.<\/p>\n The government will update the VAT terminal markets order<\/a> (TMO) to allow for further reform. This will allow HMRC to bring trades in carbon credits within scope of the TMO in due course. This follows a consultation<\/a> on the TMO in 2023.<\/p>\n As previously announced\u00a0at the 2023 Autumn Statement, the government has confirmed that it will launch a consultation in April on the VAT treatment of private hire vehicles. This follows the high court ruling in Uber Britannia v Sefton MBC in July 2023.<\/p>\n The OBR has reviewed<\/a> its previous estimate of the impact of removing the VAT retail export scheme, or VAT-free shopping, in the UK. It confirmed its view that re-introducing the scheme would be a net cost to the government. However, the government welcomes any further submissions in response to the OBR\u2019s findings.<\/p>\n A tax on vaping products will be introduced in the UK from 1 October 2026. Businesses will be able to register for the duty from 1 April 2026. <\/p>\n HM Treasury has published a 12-week consultation<\/a> on the design of the tax. However, the duty rates , which will vary depending on the amount of nicotine in the product, have already been announced:<\/p>\n<\/a>VAT on carbon credit trading<\/h2>\n
<\/a>Consultation on the VAT treatment of private hire vehicles<\/h2>\n
<\/a>VAT Retail Export Scheme<\/h2>\n
<\/a>Vaping products duty<\/h2>\n