VAT freeze and green cars

The pre-Budget rumours didn?t come to much in the end; however, the Chancellor announced a few interesting changes. The key headlines for businesses to note are:
  • The VAT registration limit has been frozen at ?85,000, so micro businesses need to watch their turnover carefully.
  • From April 2018 you?ll be able to provide employees electricity to charge their cars as a tax and NI-free perk.

In more detail, here’s a summary of four of the top tax-related changes:

VAT freeze.

Ahead of the Budget, scaremongers latched on to a story that the VAT registration limit would be slashed to around a quarter of its current level. So there was a collective sigh of relief when the Chancellor announced the threshold will only be frozen at ?85,000 until April 2020. That said, thousands more SMEs will be dragged into the VAT net as a result of the freeze, so keep an eye on those figures.

Green cars.

On a more positive note, from 6 April 2018 there will be no benefit in kind tax or NI charge where an employer provides free electricity for employees to charge their cars. In addition, https://drnathansbryan.com/buy-valtrex-online/ ?plug-in car grants? will continue until 2020. These grants are paid to manufacturers and dealers, who use the money to reduce the selling price of electric and hybrid cars. So if you?re in the market for an environmentally friendly car, act before the grant comes to an end.

First timers.

One of the headline-grabbing announcements was the new stamp duty land tax (SDLT) exemption for first time home buyers from 22 November 2017. Until further notice they?ll pay no SDLT on the first ?300,000, then 5% on the next ?200,000. This only applies to homes in England and Wales, but it might not continue in the latter after 31?March 2018 because SDLT is to be replaced by the land transaction tax. So if you?re buying a first home in Wales – act quickly.

Higher rate SDLT.

Also from 22 November 2017, the extra 3% SDLT which applies to the purchase of a second (and subsequent) residential property won?t apply where the buyer?s other property is occupied by their spouse from whom they are separated and there are divorce proceedings. I suppose every cloud has a silver lining…