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Business Advice
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Page 21 of 30
Budget 2005
 Value Added Tax
| Rates |
%
|
| Standard |
17.5
|
| Reduced |
5
|
Zero
|
0
|
| Special Schemes |
Maximum annual taxable turnover |
|
From 1 April 2004
|
| Cash accounting scheme |
£660,000
|
| Annual accounting scheme* |
£150,000/£660,000
|
Flat rate schemes†
|
£150,000
|
| |
| Annual registration and de-registration thresholds |
| |
| Registration |
£60,000
|
£58,000
|
| De-registration |
£58,000
|
£56,000
|
VAT element of fuel scale charges for cars - quarterly rates
| |
Diesel
|
Petrol
|
| |
| |
£
|
£
|
£
|
£
|
| up to 1400cc |
35.15
|
32.17
|
36.64
|
34.55
|
| 1401-2000cc |
35.15
|
32.17
|
46.32
|
43.63
|
| over 2000cc |
44.68
|
40.65
|
68.06
|
64.34
|
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
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| Late payments ¶ |
2-15
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| Misdeclaration § |
15
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| Repeated misdeclaration § |
15
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| Civil fraud § |
100
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| Failure to disclose avoidance schemes |
| designated scheme |
15
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| flat rate penalty |
£5,000
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* Depending on time since registration
† Separate scheme available for farmers (no turnover limit)
‡ Effective 1 May
§ Mitigation available
¶ Reliefs available for small businesses with annual turnover up to £150,000
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Business Advice