The much rumoured reduction in VAT rate for domestic fuel has not come to fruition, but HM Treasury has launched consultations on the VAT treatment of private hire vehicles and business donations to charity for onward charitable use.
The government has not altered the VAT registration threshold which remains at £90,000 for the time being.
Businesses in sectors such as transport should monitor the consultation on private hire VAT, which could lead to significant cost changes for ride-hailing and taxi operators.
Customs Duty
Currently, low value imports (LVIs) – goods with a value of £135 or less being imported into the UK – can claim a customs duty relief.
Following a significant increase in volumes of these imports over recent years, the government has reviewed the existing customs arrangements and concluded that these require reform. The Chancellor announced the removal of the relief from March 2029 at the latest. This will create an administrative burden for those businesses importing the smallest items.
If you have any questions about how the budget might affect you, do get in touch on 01242 776000 or tax@randall-payne.co.uk.
