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VAT FOR 2017/2018

8th March 2017 BUDGET PROPOSALS
AND CHANGES FOR 2017/2018 previously announced
(Subject to details in the Finance Bill)
Ellis Atkins have taken all due care in the presentation of these notes. No responsibility for loss occasioned to any person or company acting or refraining from action as a result of any material in these notes can be accepted by Ellis Atkins, its partners or staff. Please contact us or your own professional advisor for advice specific to your circumstances.

The standard rate remains unchanged at 20%.

The annual registration limit is increased to £85,000 from 1st April 2017.

The de-registration limit is increased to £83,000 from 1st April 2017.

The annual turnover limit below which businesses can start to use both the VAT cash accounting scheme and the VAT annual accounting scheme remains at £1,350,000.

Flat rate scheme change - From 1 April 2017 a new 16.5% flat rate is being introduced for businesses with limited costs to be known as limited cost traders who have VAT inclusive expenditure on goods which are :

  • Exclusively used for the business
  • Less than 2% of their VAT inclusive turnover in a prescribed accounting period
  • Or greater than 2% of their VAT inclusive turnover, but less than £1,000 per annum (if the accounting period is less than a year the £1,000 limit is apportioned accordingly).