Value added tax (VAT) 2014
The VAT registration threshold will rise from £79,000 to £81,000 and the deregistration threshold will increase from £77,000 to £79,000. Both changes take effect from 1 April 2014.
Prompt payment discounts
There will be new rules to ensure that VAT is accounted for on the actual price paid for goods and services where a supplier offers prompt payment discounts. The change will take effect on 1 May 2014 for supplies of telecommunication and broadcasting services to consumers and on 1 April 2015 for other goods and services.
THINK AHEAD – Consider cash accounting for VAT if your turnover is less than £1.35 million. You only pay VAT on cash you receive rather than of your invoices. Many businesses find it makes sense.
Place of supply rules
From 1 January 2015, intra-EU business to consumer (B2C) supplies of telecommunications, broadcasting and e-services will be taxed in the member state where the consumer is located. This was announced in the Budget 2013. To support this change, a mini one-stop shop will be introduced from 1 January 2015 and this will enable businesses accounting for VAT on these types of supplies in other member states to register only in the UK using a single return.
Reverse charge for gas and power
A reverse charge for gas and power will be introduced to prevent missing trader intra-community fraud in relation to these commodities from a date subject to industry consultation.
The government will consult on changes to the VAT avoidance disclosure regime to bring it more in line with the disclosure of tax avoidance schemes (DOTAS) regime. The proposals will include shifting the primary responsibility for disclosure from users to scheme promoters.Talk to Barnes Roffe today