In the last Budget, a commitment was made to keep the VAT registration threshold at its current level of £85,000 until March 2020. This is extremely good news to many small businesses whose profits would be hit hard if they were forced to register for VAT. Accident rescue charities will have access to a grant scheme to compensate them for the VAT they pay on expenses which they are unable to recover.
A consultation is planned to look at how VAT is accounted for on vouchers, to bring the UK in line with the EU. Also, following a consultation on lost VAT in the construction sector, HMRC plans to introduce a reverse charge scheme where the customer rather than the supplier accounts for VAT on certain supplies of construction. However, this is not expected to come into effect until October 2019.