Around 2,000 small businesses will benefit from the uprating of the VAT registration and deregistration thresholds announced in the Budget, which have been increased in line with inflation
From 1 April 2016, the VAT registration threshold will increase from £82,000 to £83,000, and the deregistration threshold from £80,000 to £81,000.
In addition, the turnover limit for income tax self-assessment ‘3 line accounts’ is raised to align it with the VAT registration threshold, and the entry and exit thresholds for the income tax cash basis accounting are also increased in line with the VAT registration threshold.
In recent years, the qualification thresholds for income tax ‘3 line accounts’ and cash basis accounting have been aligned with the VAT registration threshold and revalorised accordingly.
The VAT revalorisation of registration and deregistration thresholds is available here
Read our complete Budget 2016 coverage here
