From the start of the new financial year on 1 April 2017 the VAT registration threshold increases from £83,000 to £85,000 and the deregistration threshold will rise to £83,000 from £81,000.

As part of this year’s spring budget the Chancellor of the Exchequer,Philip Hammond, announced the change in VAT thresholds.

These changes to the registration and deregistration thresholds for VAT will bring them into line with inflation and for EU acquisition in line with the VAT registration threshold.

4,000 small businesses are set to benefit from this change as it means they will no longer have to register for VAT by the end of 2017-18. There are also benefits from the deregistration threshold being lowered as it means businesses closest to the threshold level will no longer have to constantly register and deregister.

HMRC states on its website that this measure is not expected to have any impact on the Exchequer, costing nothing until 2022.

Normally, the VAT registration and deregistration thresholds are considered annually in line with inflation through the use of the Retail Price Index (RPI).

HMRC’s website provides information on the VAT registration threshold https://www.gov.uk/government/publications/vat-registration-threshold/va…

In theory VAT should be straight forward to apply, but it’s not. As a result it’s no surprise that HMRC are raising an increasing number of VAT assessments and penalties every year.

The Bedrock VAT specialists have over 35 years of experience between them. They can carry out a VAT review of your business to help you avoid potential penalties and identify opportunities to mitigate VAT.Our team offer assistance and advice on a range of VAT issues. They can deal with routine VAT questions, support you during a VAT inspection by HMRC or deal with complex VAT issues relating to challenging HMRC decisions; potential exemptions, the capital goods scheme or land and property amongst others.

Take a look at the VAT section of this website or give us a call to discuss how we could work with you.

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Call us on 0115 778 8533 for a free consultation.

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