- HMRC plans to simplify VAT and customs administration to improve compliance.
- Changes affect VAT registered organizations with capital goods scheme assets and businesses not using e-invoicing.
- Charities and businesses involved in donations, online marketplaces, and importers into Great Britain are also impacted.
- Capital goods scheme threshold is outdated due to inflation in the commercial property market.
- HMRC is modernizing the scheme by removing computers and increasing the capital expenditure value threshold from 250,000 to 600,000 for land, buildings, and civil engineering work.
- Increasing the threshold reduces compliance burden for smaller businesses but restricts input tax recovery for some entities.
- Transitional guidance is expected for CGS items already in the scheme over the 250,000 threshold.
- HMRC and the Department for Business and Trade are consulting on promoting e-invoicing across UK businesses.
Source: mha.co.uk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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