The VAT registration and deregistration thresholds will increase from 1 April 2017 – the VAT registration threshold will increase from £83,000 to £85,000 and the deregistration threshold from £81,000 to £83,000.
Use and enjoyment provisions for mobile phone services – the Government will remove the VAT use and enjoyment provisions for business to consumer mobile phone services to individuals. This will resolve inconsistency where UK VAT is applied to mobile phone use by UK residents when in the EU, but not when outside the EU.
HMRC are tackling VAT evasion – firstly in regard to the provision of labour in the construction sector. The Government will consult on options to combat missing trader VAT fraud in the provision of labour in the construction sector, in particular, applying the reverse charge mechanism so the recipient accounts for VAT.
Secondly, HMRC are looking into a ‘split payment’ model for some overseas traders who avoid paying VAT. This is the next step in tackling the non-payment of VAT by some overseas traders selling goods online to UK consumers. The split payment model will allow VAT to be extracted directly from online transactions at the point of purchase.
Soft drinks industry levy – the levy rate for added sugar drinks with a total sugar content of 5g or more per 100ml will be set at 18p per litre, and those with 8 grams or more per 100ml will be set at 24p per litre.
Insurance premium tax (IPT) – from 1 June 2017, the standard rate of IPT will increase to 12% – anti-forestalling provisions will be introduced.