Value Added Tax thresholds 2012

VAT thresholds

The VAT registration threshold will rise from £73,000 to £77,000 from 1 April 2012 and the deregistration threshold will increase from £71,000 to £75,000.

VAT returns. Don’t forget that almost all businesses will be required to file their tax returns online from 1 April 2012.

Correcting anomalies and closing loopholes

From 1 October 2012, standard rate VAT will be charged on the provision of self-storage facilities and approved alterations to listed buildings. Standard rate VAT will also apply, where it does not already do so, to the sale of hot food, cold food consumed on the supplier’s premises, sports drinks, holiday caravan purchases and rental of hairdressers’ chairs.

Providers of education

A review of the VAT exemption for education providers, in particular at university degree level, will aim to ensure that commercial universities are treated fairly.

The Low Value Consignment Relief (LVCR) VAT exemption is disappearing. From 1 April 2012, goods purchased from the Channel Islands with a value of less than £15 will no longer be VAT free. Either order your CDs, DVDs, contact lenses, etc now, or look for goods imported from elsewhere, e.g. Switzerland or Hong Kong.

Charitable buildings

Buildings used by charities for non-business purposes, and/or as village halls, will be withdrawn from the scope of the reduced rate of VAT for the supply and installation of energy-saving materials. The reduced rate will continue to apply to the supply and installation of energy-saving materials in residential accommodation, including property run by charities.

Road fuel scale charges

Long-standing concessions will be brought into law and a concession relating to partially exempt businesses will be withdrawn, both in the Finance Act 2013.

VAT quarterly fuel scale charges (inclusive of VAT)

Effective from 1 May 2012.

CO2 band  VAT fuel scale charge, 3 month period (£)
120 or less 166.00
125 250.00
130 266.00
135  283.00
140 300.00
145 316.00
150 333.00
155 350.00
160 366.00
165 383.00
170 400.00
175 416.00
180 433.00
185 450.00
190 467.00
195 483.00
200 500.00
205 517.00
210 533.00
215 550.00
220 567.00
225 or more 583.00

Where the CO2 emissions figure of a vehicle is not a multiple of five, the figure is rounded down to the next multiple of five to determine the level of charge.

Fraud on imported road vehicles

A new system to tackle VAT evasion on road vehicles brought into the UK will be introduced from 15 April 2013, as previously announced. Vehicles will have to be notified to HMRC before registration with the Driver and Vehicle Licensing Agency (DVLA).

Cost sharing

A VAT exemption will be available for services shared between VAT

exempt bodies, including charities and universities.

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