Good news that the complicated bits of VAT are being reviewed by the Office of Tax Simplification to ‘ensure that the system is fit for purpose’. This is not a VAT rate review but maybe owes something to Brexit? You can read more here
I’m particularly pleased that the review will consider whether we need –
- – A formal ruling system for such things as TOGCs, and
- – To simplify partial exemption, the option to tax and the Capital Goods Scheme.
With the stated focus being on smaller businesses let’s hope the de minimis limit is reviewed. This has not changed since December 1994 when the limit of £7,500 would now be worth >£13,500. An increase would remove the headache of partial exemption from lots of people dancing on the cusp.