The standard rate of VAT increased from 17.5 per cent to 20 per cent on 4 January 2011.
For any sales of standard-rated goods or services that you made on or after 4 January 2011 you should have charged VAT at the 20 per cent rate. If you have a cash business and calculate your VAT using the VAT fraction you nust use the VAT fraction of 1/6 on your standard-rated VAT inclusive sales from 4 January 2011.
The change only applies to the standard VAT rate. There are no changes to sales that are zero-rated or reduced-rated for VAT. Similarly, there are no changes to the VAT exemptions. Any sales you make at these rates are unaffected by this change.
Value Added Tax (VAT) - Registration and Deregistration thresholds
VAT - registration threshold 79,000 82,000
VAT - deregistration threshold 77,000 80,000
Value Added Tax (VAT) - Fuel scale charges
The current law on the application of road fuel scale charges (RFSC) is in ss56 and 57 VATA 1994 and the table of charges is updated annually via secondary legislation.
Where the CO2 emission figure is not a multiple of 5, the figure is rounded down to the next multiple of 5 to determine the level of the charge. For a bi-fuel vehicle which has two CO2 emissions figures, the lower of the figures should be used. For cars which are too old to have a CO2 emissions figure, you should identify the CO2 band based on engine size, as follows:
If its cylinder capacity is 1,400cc or less, use CO2 band 140;
If its cylinder capacity exceeds 1,400cc but does not exceed 2,000cc, use CO2 band 175;
If its cylinder capacity exceeds 2,000cc, use CO2 band 225 or above.
Changes on 1 January 2015
The first change affects the VAT place of supply rules and will mean that supplies of telecommunications, broadcasting and e-services made by a business established in one EU member state to a private consumer located in another member state will be taxed in the member state in which the consumer is located. These services are currently taxed where the business supplier is established. This change will ensure that in the future they are taxed appropriately where they are consumed.
The second change is the introduction of the VAT Mini One Stop (MOSS), an online service that will give businesses the option of registering in the UK to account for the VAT due in respect of B2C supplies of these services in all the other Member States (at the appropriate rate of tax in each state) by submitting a single return to HMRC.