The VAT threshold is set to rise by £5,000 from 1 April 2024. This is the first rise in seven years. The deregistration threshold rises too. HMRC also receives new enquiry powers following the digitalisation of the VAT DIY Housebuilders scheme.
In his Spring Budget 2024, the Chancellor announced the following measures:
VAT registration and deregistration thresholds
From 1 April 2024.
- The VAT registration taxable turnover threshold increases from £85,000 to £90,000
- The taxable turnover threshold is increased from £83,000 to £88,000.
See VAT registration thresholds
VAT DIY Housebuilders: new information powers
From the date of Royal Assent to Spring Finance Bill 2024
- Additional powers for HMRC to request further evidential documentation about a DIY housebuilder’s claim.
- HMRC will risk assess claims and then choose a selection of invoices and in some cases, other documentation as deemed reasonable, to make further enquiries about the claim.
- Currently, HMRC have no power under the Scheme itself to require claimants to submit invoices or any other documentation not required on submission of the claim.
- HMRC policy paper: VAT DIY Housebuilders scheme power to request for evidence
See VAT DIY Housebuilders Scheme (subscriber guide)
VAT Treatment of Private Hire Vehicles
- As announced in Autumn Statement 2023, the government will publish a consultation on the potential implications of the High Court’s ruling in ‘Uber Britannia vs Sefton MBC’ in April 2024.
- See Cars & Vans and VAT
Overpaid repayment interest
- As previously announced HMRC will be given power to automatically collect overpaid VAT repayment interest applies consistently to all such amounts. See Interest harmonisation policy
Topical guides on this topic
Spring Budget 2024: At a glance
A summary of the key measures announced that affect individuals and businesses
VAT registration thresholds
When do you need to register or deregster for VAT
VAT: DIY Housebuilder's Scheme
It is possible to recover VAT on constructing a new residential dwelling, or dwellings, even where there is no planned sale of the property. This recovery can arise under the special refund scheme for DIY housebuilders.
VAT: Cars & Vans
What is a car for VAT? What is a van for VAT? What VAT can be recovered on a car that is bought? Leased? What about fuel? Or mileage reimbursements?
External links
