HM Treasury’s United Kingdom Budget 2007

Grant Thornton

Grant Thornton

Value Added Tax

Rates %
  • Standard
17.5
  • Reduced
5
  • Zero
0
  From 1 April 2007 From 1 April 2006 – 31 March 2007
Annual registration and de-registration thresholds
Registration £64,000 £61,000
De-registration £62,000 £59,000
Special Schemes Maximum annual taxable turnover
Cash accounting scheme £1,350,000 £660,000
Annual accounting scheme £1,350,000 £1,350,000
Flat rate schemes1 £150,000 £150,000

Road fuel scale charges

  • New scales for businesses funding road fuel used for private motoring.
  • 21 bands with carbon dioxide emission increments of 5g/km ranging from 140g/km to 240g/km.
  • VAT element of quarterly scale charges ranging from £27.11 to £63.45.
  • Applicable from start of next VAT period beginning on or after 1 ay 2007.

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

Penalties % of the related tax
  • Late registration 2
  •   9 months late or less
5
  •   over 9 and up to 18 months late
10
  •   over 18 months late
15
  • Late payments 3
2-15
  • Misdeclaration3
15
  • Repeated misdeclaration3
15
  • Civil fraud3
100
  • Failure to disclose avoidance schemes
    • designated scheme
15
    • flat rate penalty
£5,000

1 £150,000 if less than 12 months since registration
2 Mitigation available
3 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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