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Cash
accounting scheme
The turnover
limits for the cash accounting scheme will also increase in line with inflation
to £660,000 to join the scheme and £825,000 to stay in the scheme.
These limits come into effect on 1 April 2004.
There is also a new
measure to allow outstanding VAT to be accounted for on a cash basis for a
further six months after leaving the scheme.
VAT
anti-avoidance measures
- New disclosure rules are to be
introduced for certain businesses using specific avoidance schemes.
- Measures come into effect from 18 March
2004 to block a complex avoidance scheme which uses a Special Purpose Vehicle
to avoid VAT on commercial buildings.
- In a few cases there will be two new
tests applying from 1 August 2004 for eligibility for VAT grouping.
Alcoholic
drinks
The excise duty
on spirits, cider and sparkling wine is frozen. The duty on beer and still wine
is increased in line with inflation, adding 1p to a pint of beer and to a
standard 175ml glass of wine. The new rates come into effect from midnight on
21 March 2004.
The reduced rate scheme for small breweries continues.
Improvements are being made to the scheme which come into effect on 1 June
2004. New measures for stamping retail containers of spirits and certain wines
are coming into effect from Royal Assent.
Tobacco
products
Tobacco duties
are increased in line with inflation with effect from 6pm on 17 March 2004.
Vehicle
Excise Duty (VED)
VED rates have
been frozen for all cars, vans, lorries and motorcycles.
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