HM Treasury’s United Kingdom Budget 2005

brought to you courtesy of Grant Thornton


brought to you courtesy of Grant ThorntonValue Added Tax

Rates
%
Standard
17.5
Reduced
5
Zero
0
Special Schemes Maximum annual taxable turnover
From 1 April 2004
Cash accounting scheme
£660,000
Annual accounting scheme*
£150,000/£660,000
Flat rate schemes

£150,000
 
Annual registration and de-registration thresholds
 
From 1 April 2005
From 1 April 2004
Registration
£60,000
£58,000
De-registration
£58,000
£56,000

VAT element of fuel scale charges for cars – quarterly rates

 
Diesel
Petrol
  2005/2006 2004/2005 2005/2006 2004/2005
 
£
£
£
£
up to 1400cc
35.15
32.17
36.64
34.55
1401-2000cc
35.15
32.17
46.32
43.63
over 2000cc
44.68
40.65
68.06
64.34

Bad debts – output tax reclaimable, input tax repayable after 6 months

Penalties
% of the related tax
Late registration §
  9 months late or less
5
  over 9 and up to 18 months late
10
  over 18 months late
15
Late payments
2-15
Misdeclaration §
15
Repeated misdeclaration §
15
Civil fraud §
100
Failure to disclose avoidance schemes
designated scheme
15
flat rate penalty
£5,000

* Depending on time since registration
Separate scheme available for farmers (no turnover limit)
Effective 1 May
§ Mitigation available
Reliefs available for small businesses with annual turnover up to £150,000

The figures shown here are subject to ammendment as the Finance Bill passes through Parliament.

This information has been prepared only as a topical guide to tax and personal financial matters. No responsibility can be accepted by us for loss occasioned to any person acting or refraining from acting as a result of any material contained in this publication.

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