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Budget 2008
Value Added Tax
| Rate | % | |
| Standard | 17½ | |
| Reduced | 5 | |
| Zero | 0 | |
| Annual registration and de-registration thresholds | ||
| From 1 April 2008 | From 1 April 2007– 31 March 2008 | |
| Registration | £67,000 | £64,000 |
| De-registration | £65,000 | £62,000 |
| Special schemes maximum annual taxable turnover | ||
| Cash accounting scheme | £1,350,000 | £1,350,000 |
| Annual accounting scheme | £1,359,000 | £1,350,000 |
| Flat rate schemes* | £150,000 | £150,000 |
Road fuel scale charge
• New scales for businesses funding road fuel use for private
motoring.
• 24 bands with carbond dioxide emission increments of 5g/km ranging
from120g/km or less to 235g/km or more.
• VAT element of quarterly scale charges ranging from £27.11 to £63.45.
• Applicable from start of next VAT period beginning on or after
1 May 2008.
| Bad debts | |
|
|
| Penalties | % of the related tax |
| Late registration† | |
|
5 |
|
10 |
|
15 |
| Late payments‡ | 2-15 |
| Misdeclaration† | 15 |
| Repeated misdeclaration† | 15 |
| Civil fraud † | 100 |
| Failure to disclose avoidance schemes | |
|
15 |
|
£5,000 |
* Separate scheme available for farmers (no turnover limit).
† Mitigation available.
‡ Reliefs available for small businesses with annual turnover up to £150,000.
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