|
Page 22 of 31
Budget 2004
Business Taxation
Value Added Tax
| Rates |
%
|
| Standard |
17.5
|
| Reduced |
5
|
Zero
|
0
|
| Special Schemes |
Maximum annual taxable turnover |
|
|
| Cash accounting scheme |
£660,000
|
£600,000
|
| Annual accounting scheme* |
£150,000/£660,000
|
£600,000
|
Flat rate schemes†
|
£150,000
|
£100,000
|
| Annual registration and de-registration thresholds |
| |
| Registration |
£58,000
|
£56,000
|
| De-registration |
£56,000
|
£54,000
|
VAT element of fuel scale charges for cars - quarterly rates
| |
Diesel
|
Petrol
|
| |
| |
£
|
£
|
£
|
£
|
| up to 1400cc |
32.17
|
33.51
|
34.55
|
35.29
|
| 1401-2000cc |
32.17
|
33.51
|
43.63
|
44.68
|
| over 2000cc |
40.65
|
42.14
|
64.34
|
65.82
|
Bad debts - output tax reclaimable, input tax repayable after 6 months
| Penalties |
% of the related tax
|
| Late registration §¶ |
| 9 months late or less |
5
|
| over 9 and up to 18 months late |
10
|
| over 18 months late |
15
|
| Late payments ƒ |
2-15
|
| Misdeclaration ¶ |
15
|
| Repeated misdeclaration ¶ |
15
|
| Civil fraud ¶ |
100
|
| Failure to disclose avoidance schemes |
| flat rate penalty |
£5,000
|
* Depending on time since registration
† Separate scheme available for farmers (no turnover limit)
‡ Effective 1 May
§ Incentive scheme until 30 September 2003
¶ Mitigation available
ƒ Reliefs available for small businesses with annual turnover up to £150,000
|
Business Advice