Budget 2008 - VAT
The main VAT changes announced in the Budget today are;
- With effect from 1 April 2008, the annual VAT Registration/deregistration limits have
increased to £67,000/£65,000 respectively. - Revised fuel scale charges will apply for VAT return periods beginning after 1 May 2008.
- A transitional period has been announced for VAT refund claims to 31 March 2009. This follows recent litigation relating to the three year capping rules introduced in 1996/7.
- Withdrawal of the staff hire concession with effect from 1 April 2009.
- A package of simplification measures for the option to tax.
- Extension of the VAT exemption for fund management services.
- The limits for correcting errors on VAT returns have increased from £2,000 to the greater of £10,000 and 1% of turnover.
Full details of these changes will be contained in our Budget Tax Bulletin to be issued shortly.
