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Autumn Budget 2021: A lack of headline grabbing VAT changes

Rob Marchant, Partner, VAT and Custom Duty services
27/10/2021
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The VAT aspects of today’s announcements were more interesting for what was not covered, rather than what was included.

It was interesting that the Chancellor didn’t take the option provided by Brexit, to deviate from EU VAT law in making headline grabbing UK VAT rate changes. For example, by reducing VAT on household energy bills, providing a zero-rate for cladding works or further incentivising green measures such as solar panels.

None of the VAT measures announced below were particularly significant but will still be important to those impacted.

  • Confirmation that a new VAT penalty system will be introduced for VAT return periods starting on or after 1 April 2022. This has confirmed what has previously been announced and will be applicable to any UK VAT registered organisations. We will be providing more details of the changes in the near future.
  • Potential changes to the VAT margin scheme to apply in Northern Ireland for motor vehicles sourced from Great Britain and introduction of a Second-Hand Motor Vehicle Export Refund Scheme for businesses that remove used motor vehicles from Great Britain for resale in Northern Ireland.
  • Extension of a VAT exemption for imported dental prostheses.
  • A commitment to reviewing the VAT rules applicable to fund management fees.

To discuss the impact of any of these changes or your VAT position, please get in touch with, Robert Marchant, Rob Warne, Rob Janering or your usual Crowe contact.

Autumn Budget 2021

What do the announcements mean for you and your organisation?

Insights

HMRC has confirmed its policy on the VAT treatment of sale and leaseback transactions following Supreme Court decision in Balhousie earlier this year.
Unsure if you have paid import VAT and if so how it is to be reclaimed?
HMRC has confirmed its policy on the VAT treatment of sale and leaseback transactions following Supreme Court decision in Balhousie earlier this year.
Unsure if you have paid import VAT and if so how it is to be reclaimed?

Contact us

Robert Warne
Rob Warne
Partner, Head of VAT and Customs Duty services
London
Robert Marchant
Robert Marchant
Partner, VAT and Customs Duty services
London
Rob Janering
Rob Janering
Partner, VAT and Customs Duty services
London