VAT Registration Threshold: Our latest update
While we have been used to a small annual increase in the VAT registration threshold for many years now, last week’s budget announced that the government are maintaining the threshold at £85,000 for the next two years, rather than reducing it (which had been suggested) and so this may be welcome news for many smaller businesses worried about a significant reduction that would bring them within the VAT net.
VAT Registration Threshold: What does this mean for growing businesses?
The flip side of this is of course that many growing businesses may now find themselves having to become VAT registered sooner than expected.
Beyond two years however, in which direction the VAT registration threshold will move remains undecided in terms of whether a reduction may follow.
What about Making Tax Digital?
There has also been no revision to the April 2019 starting date for Making tax digital (MTD) and therefore a frozen VAT registration threshold is likely to bring more businesses into MTD.
How Condies can help you make sense of VAT
Condies offer a free VAT health check which covers all areas of VAT from voluntary registration through to dispute resolution – for further details contact us on 01383 721421 or email firstname.lastname@example.org
Access our free Tax and Financial Strategies Guide 2017/18
You may be interested in our free Tax and Financial Strategies guide 2017/18, this will make you aware of the main tax allowances and incentives, so they might incorporate them into your overall financial strategy.
You can also follow this link to view the government’s own policy paper on the Autumn Budget 2017