Asked by: Helen Grant (Conservative - Maidstone and Malling)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of increasing the taxable turnover SMEs can earn in a12-month period before registering for VAT.
Answered by James Murray - Chief Secretary to the Treasury
At £90,000, the UK has a higher VAT registration threshold than any EU country and the joint highest in the OECD. This keeps the majority of businesses out of the VAT regime altogether.
Asked by: Helen Grant (Conservative - Maidstone and Malling)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of reversing the changes to VAT on double cab pick-ups .
Answered by James Murray - Chief Secretary to the Treasury
The VAT treatment of double cab pick-ups (DCPUs) has not changed. DCPUs are subject to the standard 20 per cent rate of VAT.
As announced at Autumn Budget 2024, following a Court of Appeal judgment, the Government will treat DCPUs with a payload of one tonne or more as cars for the purposes of Benefit in Kind and Capital Allowances taxation.
However, for VAT purposes, DCPUs with a payload of one tonne or more will continue to be classed as vans, meaning VAT-registered businesses will continue to be able to recover the VAT paid on them in line with normal VAT recovery rules. The definition of a motor car, and what does not constitute a car, for VAT purposes is set out in SI 1992/3122 – Value Added Tax (Cars) Order 1992.
Asked by: Helen Grant (Conservative - Maidstone and Malling)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to reduce the tax on draught (a) beer and (b) cider.
Answered by Gareth Davies - Shadow Minister (Business and Trade)
At Spring Budget 2024, the Chancellor announced that alcohol duty would be frozen until 1 February 2025 to support alcohol producers, pubs, and consumers with cost of living pressures.
This extends the six months freeze the Government announced at Autumn Statement 2023, providing businesses time to adapt to the new duty system introduced on 1 August 2023.
Asked by: Helen Grant (Conservative - Maidstone and Malling)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, how small businesses will manage their VAT arrangements with EU customers after the UK leaves the EU; and what assessment he has made of the potential effect of those new arrangements on the level of administration undertaken by those businesses.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
The Government’s aim is to keep VAT processes as close as possible to what they are now. This will provide the best continuity and most certainty for small businesses.
Our future relationship with the EU is subject to further negotiations.