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UK Spring Budget 2017 – VAT Implications

The UK Chancellor delivered his Spring Budget yesterday.  Affecting online sellers are the following:

UK Established Companies

  • VAT Registration and deregistration thresholds – 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.   This means, from April 1st 2017, if you are a UK established business you will not have to VAT register until your turnover reaches £85,000 in a rolling 12 month period.


Overseas Sellers UK VAT Fraud Counter-Measures

  • ‘Split Payment’ model – In the next step in tackling the non-payment of VAT by some overseas traders selling goods online to UK consumers and building on the measures introduced in Budget 2016, the government will shortly publish a call for evidence on the case for a new VAT collection mechanism for online sales. This would harness technology to allow VAT to be extracted directly by the Exchequer from online transactions at the point of purchase.


  1. chris 11 months ago

    I joined the scheme in Dec 2000 when the registration threshold was a lot lower than it’s today. However, last year I grossed around 72k. I am wondered is there any need for me to still continue to be vat registered?

    • 10 months ago

      If you are sure you will not exceed the new threshold of £85,000 in the short/ medium term, HMRC should let you deregister. Please remember, you will not then be able to reclaim any VAT on purchases you make.