Value Added Tax
Registration threshold
The VAT registration and deregistration thresholds were previously intended to remain frozen at their present levels of £85,000 and £83,000 until 31 March 2026. In the first increase in the thresholds since April 2017, the thresholds have been increased to £90,000 and £88,000 with effect from 1 April 2024. The Budget announcement says that they will be again frozen at these new levels, but it does not say for how long.
Private hire vehicles
A High Court decision involving Uber and Sefton Metropolitan Borough Council has cast doubt on the VAT treatment of private hire vehicles. The Government will launch a consultation in April 2024 to understand the impact of the decision, and is committed to exploring a range of viable options to ensure that the court ruling does not have any undue adverse effects on the private hire vehicle sector and its passengers.