The Chancellor has announced the Autumn Statement 2022, which included the following VAT related items:
Maintaining the VAT registration and deregistration thresholds
The VAT registration and deregistration thresholds will not change for a further period of 2 years from 1 April 2024 to 31 March 2026. The UK’s VAT registration threshold of £85,000 remains more than twice as high as the EU and OECD averages.
However, considering the current levels of inflation, some businesses may be forced to increase their prices. Those businesses trading just below the VAT registration threshold may be at risk of breaching the threshold in the near future if the value of their taxable supplies rise.
If you or your business needs any advice around VAT registration or deregistration, please do not hesitate to get in touch and one of our experts will be pleased to assist.
VAT free shopping scheme
The proposed VAT free shopping scheme for overseas visitors to Great Britain has now officially been cancelled.
There were no further VAT changes announced, however, Constable VAT will continue to closely monitor all VAT developments, and we will discuss any future announcements as they arise.