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Page 21 of 31
Budget 2007
Value Added Tax
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From 1 April 2007 |
From 1 April 2006 - 31 March 2007 |
| Annual registration and de-registration thresholds |
| Registration |
£64,000 |
£61,000 |
| De-registration |
£62,000 |
£59,000 |
| Special Schemes Maximum annual taxable turnover |
| Cash accounting scheme |
£1,350,000 |
£660,000 |
| Annual accounting scheme |
£1,350,000 |
£1,350,000 |
| Flat rate schemes1 |
£150,000 |
£150,000 |
Road fuel scale charges
- New scales for businesses funding road fuel used for private motoring.
- 21 bands with carbon dioxide emission increments of 5g/km ranging from 140g/km to 240g/km.
- 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 2007.
Bad debts - output tax reclaimable, input tax repayable after 6 months
| Penalties |
% of the related tax |
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5 |
- over 9 and up to 18 months late
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10 |
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15 |
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2-15 |
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15 |
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15 |
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100 |
- Failure to disclose avoidance schemes
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15 |
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£5,000 |
1 £150,000 if less than 12 months since registration
2 Mitigation available
3 Reliefs available for small businesses with annual turnover up to £150,000
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Business Advice