BUDGET l 15 March 2023 14 6 arc 2 24 VALUE ADDED TAX (VAT) Registration and deregistration The VAT registration threshold will increase from £85,000 to £90,000 from 1 April 2024. The deregistration threshold will go up from £83,000 to £88,000. DIY Housebuilders Scheme Following digitisation of the DIY Housebuilders Scheme, the government will introduce legislation to give HMRC additional powers to request further evidential documentation in relation to a DIY housebuilder’s claim. The power will come into force on the date of Royal Assent to the Finance Bill 2024 and will apply to claims made from that date. Interest on late paid VAT Technical amendments, backdated to 1 January 2023, will correct the unintentionally narrow scope of the common period rules, to ensure consistent application of HMRC’s power automatically to collect overpaid VAT repayment interest. VAT treatment of private hire vehicles The government will consult on the potential implications of the High Court’s ruling in Uber Britannia v Sefton MBC. This concerns whether a private hire operator is acting as principal or agent when entering into a contractual obligation with a customer, which affects the basis on which VAT is charged. TAX ADMINISTRATION HMRC digital services HMRC’s digital services are to be improved and simplified to support income tax self-assessment taxpayers seeking to pay tax in instalments. These changes will be implemented from September 2025. Class 2 NIC abolition The government will consult later in 2024 on how it will deliver the abolition of class 2 NICs, as promised at Autumn Statement 2023. > THINK AHEAD Make sure you submit your VAT returns and pay any VAT by the due dates to avoid penalties and interest. If you can’t pay on time, contact HMRC before the due date to make a time to pay arrangement.
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