Budget 2009


Personal Income Tax

Tax Credits

National Insurance Contributions


Savings & Investments

Capital Gains Tax

Stamp Duty Land Tax

Inheritance Tax

Corporation Tax

Business Tax

Value Added Tax

Other Measures

Tax Tables

National Insurance

Value Added Tax

Registration threshold

The threshold of VATable turnover for registering a business for VAT rises by £1,000 to £68,000 from 1 May 2009. The level of turnover below which a business can deregister also rises by £1,000 to £66,000.

Fuel scale rates

The VAT charge which applies where a business provides car fuel for private use by a proprietor or employee increases slightly for return periods commencing from 1 May 2009. The rates depend on the CO2 emissions rating of the car and have to be obtained from the full table which is available on HM Revenue & Customs' website. The rates will change again on 1 January 2010 when the standard rate reverts to 17.5%.

Standard rate

There were no further announcements about the standard rate of VAT. The temporary cut to 15% will therefore end on 31 December 2009, and the rate will return to 17.5% on 1 January 2010. Measures have already been announced to stop traders artificially advancing tax points for supplies in order to charge 15% to people who cannot recover VAT in respect of goods or services that will really be supplied after the rate rises.

Cross border supplies

New rules will apply to traders supplying services to customers in other EU countries from 1 January 2010. There will be changes to the place of supply rules, which make some such supplies chargeable to UK VAT and some chargeable in the customer's country, and there will be a new requirement to report sales of services to HM Revenue & Customs on a quarterly basis. Anyone who is involved in international supplies of services will need to make their systems ready in good time.

Tax Trap
Make sure you are ready if these changes affect you.

There will also be a new electronic refund procedure for claiming back VAT on business expenditure incurred in other member states to replace the present paper-based system. The deadline for businesses submitting claims will be extended from 6 to 9 months, and the time limit for the authorities to pay the money will be shortened from 6 to 4 months.

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