Budget 2012

Summary of indirect tax changes with potential VAT implications

Registration

  • Threshold up from £73,000 to £77,000

  • Deregistration threshold from £71,000 to £75,000

Road fuel scale charges

  • New rates from 21 March 2012

  • Don't forget if commercial vehicles have private use & fuel is not recharged (at least at cost) scale charges apply to these as well

Consultation document to be issued – proposed new measures likely to become mandatory in summer 2012

  • To clarify the treatment of catering to ensure that all hot takeaway food is taxed and to clarify the meaning of premises;

  • To tax sports nutrition drinks to ensure that all sports drinks receive the same tax treatment;

  • To remove exemption from self storage to ensure all supplies of storage receive the same tax treatment and to counter avoidance; change from 1 October 2012

  • To remove the anomaly whereby approved alterations to certain listed buildings are zero-rated whilst alterations to other buildings, and repairs & maintenance to all buildings are standard rated; HMRC does not intend to extend the reduced (5%) rate to cover repairs & maintenance to listed and other buildings; rather it intends to withdraw the relief applicable to listed buildings. Change from 1 October 2012 with transitional arrangements for buildings in the course of works of substantial reconstruction with conracts that were entered into before 21 March 2012.

  • To put beyond doubt the fact that VAT applies to the rental of hairdressers' chairs;

  • To ensure that holiday caravans are taxed consistently at the standard rate of VAT.

Gaming machine duty

  • Flat rate to be abolished

  • Ad valorem duty to be introduced from 1April 2013

    • 5% for stake up to 10p & maximum prize £8

    • 20% for others

  • VAT exempt - input tax likely to be blocked