Registration and deregistration
The VAT registration turnover limit rises to £67,000 from 1 April 2008. The deregistration limit increases to £65,000.

 

Exemption for fund management
The VAT exemption for fund management will be extended to UK-listed investment entities (including investment trust companies and venture capital trusts) and certain overseas funds. The change will take effect for supplies of services from 1 October 2008.

 

Correction of errors in returns
Businesses can correct past errors on their VAT return for the period in which the errors are discovered. The limit will be increased to the greater of £10,000 or 1% of turnover, subject to a £50,000 upper limit. The new limit will apply to periods starting after 30 June 2008.

 

Fuel scale charges
From 1 May 2008, the scale charges for taxing private motoring change where a business recovers input tax on fuel. Businesses must use the new scales from the start of their next prescribed accounting period beginning after 30 April 2008.

 

CO2 Emissions g/km VAT Fuel Scale Charge VAT due per car   £ £ 120 or less 138 20.55 121-139 207 30.83  140-144 221 32.91 145-149 234 34.85 150-154 248 36.94 155-159 262 39.02 160-164 276 41.11 165-169 290 43.19 170-174 303 45.13 175-179 317 47.21 180-184 331 49.30

CO2 Emissions g/km VAT Fuel Scale Charge VAT due per car   £ £ 185-189 345 51.38 190-194 359 53.47 195-199 373 55.55 200-204 386 57.49 205-209 400 59.57 210-214 414 61.66 215-219 428 63.74 220-224 442 65.83 225-229 455 67.77 230-234 469 69.85 235 and over 483 71.94

Transitional period for claims
There will be a transitional period to 31 March 2009, during which eligible businesses can make VAT repayment claims relating to periods before the introduction of the present three-year time limit for claims. The measure will permit claims by businesses for over-declared output VAT or under-claimed input VAT in periods between 1 April 1973 and 1 May 1997.

 

The change is the result of a decision by the House of Lords that the three-year limit does not currently apply to repayment rights accrued before 1 May 1997 because there was no transitional period when the limit was introduced.

 

---

Saver
Reclaim VAT back to 1973. Take advantage of the transitional period for claims announced in the Budget and get a VAT repayment with interest and repayment supplement.

---