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VAT Registration Threshold: increase to £90,000

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VAT Registration Threshold 

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As announced at Spring Budget 2024, secondary legislation will amend the VAT Act 1994 to increase the VAT registration and deregistration thresholds.

The taxable turnover threshold which determines whether a person must be registered for VAT, will be increased from £85,000 to £90,000

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VAT De- Registration Threshold 

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The taxable turnover threshold which determines whether a person may apply for deregistration will be increased from £83,000 to £88,000

For Northern Ireland, the registration and deregistration thresholds for acquisitions will increase from £85,000 to £90,000.

These changes will be effective from 1 April 2024. 

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VAT — Bringing trades in Carbon Credits within the scope of the Terminal Markets Order (TMO)

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As announced at Spring Budget 2024, the government will introduce legislation in Spring Finance Bill 2024 that underpins the VAT Terminal Markets Order (TMO) which will take effect from the date of Royal Assent to Spring Finance Bill 2024. This will allow for further reform, including bringing trades in carbon credits within the scope of the TMO in due course, and forms part of the government’s broader commitment to update the TMO legislation, which was announced at Tax Administration and Maintenance Day 2023.  

A summary of responses to the consultation on reforming the TMO legislation, which was launched in 2023, will be published in due course.

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VAT: DIY Housebuilders Scheme: Power to request evidence

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Following digitisation of the DIY Housebuilders Scheme, the government will introduce legislation in Spring Finance Bill 2024 to give HMRC Commissioners additional powers to request further evidential documentation in relation to a DIY housebuilder’s claim. This will assist the Commissioners in validating claims and carrying out compliance checks. 

The power will come into force on the date of Royal Assent to Spring Finance Bill 2024 and will apply to claims made on or after the day the provisions come into force.

The tax information and impact note for this measure provides more information: VAT: DIY Housebuilders Scheme request for evidence.

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VAT Treatment of Private Hire Vehicles – The government will consult in early 2024 on the impacts of the July 2023 High Court ruling in Uber Britannia Ltd v Sefton MBC.

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Source HMRC.

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