Value Added Tax
The rates for 2018/19 are as follows:
| From | 1 April 2018 |
|---|---|
| Standard rate | 20% |
| VAT fraction | 1/6 |
| Reduced Rate | 5% |
| Turnover Limits | |
| Registration - last 12 months or next 30 days over | £85,000 |
| Deregistration - next 12 months under | £83,000 |
| Annual and Cash Accounting Schemes | £1,350,000 |
| Flat Rate Scheme | £150,000 |
The VAT registration and deregistration thresholds will not be uprated for a period of two years. The two year period ends on 31 March 2020.
Online VAT fraud
The government will legislate to extend HMRC’s powers to hold online marketplaces jointly and severally liable for the unpaid VAT of overseas traders on their platforms to include all (including UK) traders.
Online marketplaces will be required to ensure that VAT numbers displayed for businesses operating on their website are valid. They will also be required to display a valid VAT number when they are provided with one by a business operating on their platform.