22nd April 2009 BUDGET PROPOSALS
AND CHANGES FOR 2009/2010 previously announced
(Subject to details in the Finance Bill)
Ellis Atkins have taken all due care in the presentation of these notes. No responsibility for loss occasioned to any person or company acting or refraining from action as a result of any material in these notes can be accepted by Ellis Atkins, its partners or staff. Please contact us or your own professional advisor for advice specific to your circumstances.

4.1 The standard rate was reduced from 17.5% to 15% on 1st December 2008. This rate will revert back to 17.5% on 1st January 2010.

4.2The annual registration limit is increased to £68,000 from 1st May 2009.

4.3 The annual turnover limit below which businesses can start to use both the VAT cash accounting scheme and the VAT annual accounting scheme remains at £1,350,000.

4.4 VAT fuel scale charges for private use of cars previously based on engine size are now to be based on CO2 emissions where the car is first registered after 1st March 2001. The scale charges have been revised to reflect changes in fuel prices and maintain alignment with CO2 bands used for income tax purposes.

For example, the scale charge for a car with CO2 emissions of 200 g/km is £352 per quarter, inclusive of VAT (reduced from £386).

The new scale charges will apply from the start of a businesses next prescribed accounting period beginning on or after 1st May 2009.