From 1 April 2016 the VAT registration threshold will rise by £1,000 to £83,000 and the deregistration threshold will increase to £81,000.
The Chancellor has announced a number of measures to combat VAT fraud, including a consultation to take place this Spring on a new penalty for participating in VAT fraud. The government also introduced, with effect from 1 February 2016, an anti-fraud measure to prevent VAT fraud in the wholesale market of electronic communications services. The government will continue to engage with the EU and OECD to explore international solutions to VAT fraud.
VAT Refunds for shared services
The Finance Bill 2016 will include details of how named non-departmental and similar bodies may claim refunds of VAT which they incur on shared services used to support their non-business activities. This measure was first announced in the Autumn Statement 2014 and it is hoped that it will encourage public bodies to share back-office services and benefit from economies of scale.
Wider VAT refunds for museums and galleries
The government will broaden the eligibility criteria for VAT refunds to enable greater support to a wider range of free museums and galleries.
Insurance Premium Tax
It was widely expected that there would be a significant hike in IPT but the standard rate will rise by 0.5% to 10%. The Chancellor said today that the additional revenue would go towards improving flood defences.
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