Budget
2008
VALUE ADDED TAX
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 |
36.54 |
| 155-159 |
262 |
39.02 |
| 160-164 |
276 |
41.11 |
|
| CO2
Emissions g/km |
VAT
Fuel Scale Charge |
VAT
due per car |
| |
£ |
£ |
| 200-204 |
386 |
57.49 |
| 205-209 |
400 |
59.57 |
| 210-214 |
414 |
61.66 |
| 215-219 |
428 |
63.77 |
| 220-224 |
442 |
65.83 |
| 225-229 |
455 |
67.77 |
| 230-234 |
469 |
69.85 |
| 235
& 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.
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This
summary has been prepared very rapidly and
is for general information only. The proposals
are in any event subject to amendment before
the Finance Act is passed. You are recommended
to seek competent professional advice before
taking any action on the basis of the contents
of this publication.
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