|
Page 22 of 32
Budget 2006
Value Added Tax
| Rates |
%
|
| Standard |
17.5
|
| Reduced |
5
|
| Zero |
0
|
| Annual registration and de-registration thresholds |
| From 1 April |
2006
|
2005
|
| Registration |
£61,000
|
£60,000
|
| De-registration |
£59,000
|
£58,000
|
| Special Schemes |
Maximum annual taxable turnover |
| From 1 April |
2006
|
2005
|
| Cash accounting scheme |
£660,000
|
£660,000
|
| Annual accounting scheme* |
£1,350,000
|
£660,000
|
Flat rate schemes†
|
£150,000
|
£150,000
|
VAT element of fuel scale charges for cars - quarterly rates
| |
Diesel
|
Petrol
|
| |
2006/2007‡
|
2005/2006‡
|
2006/2007‡
|
2005/2006‡
|
| |
£
|
£
|
£
|
£
|
| up to 1400cc |
38.72
|
35.15
|
40.66
|
36.64
|
| 1401-2000cc |
38.72
|
35.15
|
51.53
|
46.32
|
| over 2000cc |
49.30
|
44.68
|
75.66
|
68.06
|
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 ¶ |
2-15
|
| Misdeclaration § |
15
|
| Repeated misdeclaration § |
15
|
| Civil fraud § |
100
|
| Failure to disclose avoidance schemes |
| designated scheme |
15
|
| flat rate penalty |
£5,000
|
* £150,000 if less than 12 months 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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