VAT and duties
Although no announcements were made in relation to the VAT registration and deregistration thresholds from April 2017 onwards, there were a couple of VAT announcements as follows:
VAT Flat Rate Scheme
The Government will introduce a new 16.5% rate from 1 April 2017 for businesses where there are minimal expenses, such as many labour-only businesses. This is aimed at levelling the playing field, while maintaining the accounting simplification for the small businesses that use the scheme as intended.
VAT relief on adapted cars for wheelchair users
In the 2016 Autumn Statement the Government confirmed that they will clarify the application of the VAT zero-rating for adapted motor vehicles to stop misuse of this legislation, while continuing to provide help for disabled wheelchair users.
Insurance Premium Tax (IPT)
IPT will be increased to 12% from 1 June 2017. IPT is a tax on insurers and so any impact on premiums depends on insurers’ commercial decisions.
The main rate of fuel duty for petrol and diesel will remain frozen for the seventh successive year, saving motorists around £130 a year. This is great news, although a reduction in the duty would have been more welcome!
For more details on what was announced in the 2016 Autumn Statement in relation to VAT and other duties, please contact Julie Osborn on 01228 711888.