12
Autumn Budget 2017
Value Added Tax (VAT)
The rates for 2018/19 are as follows:
1 April 2018
From
Standard rate
20%
VAT fraction
1/6
Reduced rate
5%
Turnover limits Registration – last 12 months or next 30 days over
£85,000
Deregistration – next 12 months under
£83,000
Annual and Cash Accounting Schemes
£1,350,000
Flat Rate Scheme
£150,000
The VAT registration and deregistration thresholds will not be uprated for a period of two years. The two year period ends on 31 March 2020.
Online VAT fraud
The government will legislate to extend HMRC’s powers to hold online marketplaces jointly and severally liable for the unpaid VAT of overseas traders on their platforms to include all (including UK) traders.
Online marketplaces will be required to ensure that VAT numbers displayed for businesses operating on their website are valid. They will also be required to display a valid VAT number when they are provided with one by a business operating on their platform.
Duties Alcohol and tobacco duties
All alcohol duty rates will be frozen. The government intends to introduce a new duty band in 2019 for still cider of a strength of at least 6.9% but not exceeding 7.5% alcohol by volume.
The duty rate on all tobacco products will continue to increase by 2% above RPI inflation each year until the end of the Parliament. Hand-rolling tobacco will rise by an additional 1% to 3% above RPI inflation this year. The new tobacco duty rates have effect from 6pm on 22 November 2017. Air Passenger Duty (APD) The short-haul rates of APD for the tax year 2019/20 will remain at their present levels. The long-haul reduced rate for the tax year 2019/20 will be frozen at the 2018/19 level; the standard rate will increase by £16; and the higher rate will increase by £47.
From April 2018 the Scottish government will replace APD with Air Departure Tax (ADT).
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