VAT, EXCISE AND OTHER DUTIES
Annual accounting scheme
The annual taxable turnover limit for joining the
scheme is to increase from £660,000 to £1,350,000 with effect from
April 2006.
Cash accounting scheme
The government has written to the European Commission
with a view to increasing the turnover limit for joining the cash accounting
scheme from £660,000 to £1,350,000 with effect from April 2006.
This is an increase of more than 100% and may benefit up to one million small
businesses.
Car fuel scale charges
The Chancellor announced in Budget 2005 the
government’s intention to align the VAT car fuel scale charges with the
income tax benefit in kind provisions. This new system is to come into
force on 1 May 2007.
VAT and property
The government is introducing a package of measures to
modernise, simplify and provide greater certainty for businesses dealing with
some VAT and land and property matters. These will include:
- a new consultation on supplies where the legal and
beneficial ownership in land has been separated
- guidance on the revocation of the option to tax
after 20 years.
Other VAT measures
The government will be assessing options for providing
more help in respect of bad debt relief. The outcome is to be reported in
Budget 2006.
The 5% reduced rate is to be extended to the installation
of wood-fuelled boilers in qualifying buildings with effect from 1 January
2006.
Alcohol industry
Customs has signalled an intention to repeal or
simplify around 30 regulations that affect businesses in the alcoholic drinks
industry.
Gambling
Following a review of gambling taxation the government
has decided to maintain the current regimes but has made some small
modifications to align the tax regime with the Gambling Act.
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