Blick Rothenberg

Budget predictions: Corporate and VAT

13.02.2017

Filed Under: UK Business

Written by: David Barzilay

The last ever Spring Budget is less than one month away and Blick Rothenberg’s experts offer their predictions on what the Chancellor could announce.

Corporate tax
 
  • In all likelihood, the last ever Spring Budget is predicted to be fairly uneventful, in keeping with the last ever Autumn Statement. The exact course of Britain's departure from the EU is still not clear, which makes widespread tax changes unlikely. Saying that, corporate taxes could be reduced to 15% to make Britain more attractive to international businesses. (Nimesh Shah, Partner)
 
VAT
 
  • The UK should re-introduce “Postponed Accounting for import VAT”. This would allow business to off-set import VAT via their quarterly VAT returns rather than have to pay it at the point of importation and claim it back up to 3 months later. This would be a significant administrative easement and assist cash flow for UK businesses importing goods. Apart from the one-off cash flow hit, it should not affect Government revenues. (Alan Pearce, VAT Partner)
 
  • This would also allow the UK to compete on an equal footing with many other EU countries, notably the Netherlands and more recently France who adopted this treatment last year. Those EU countries that already operate a postponed accounting regime have a competitive edge over the UK and often promote it as an incentive to do business there rather than the UK. (Alan Pearce)
 
  • This issue will become more important in the run up to Brexit and beyond. A change to the UK’s current policy of collecting import VAT at the time of importation will demonstrate that we are open for business and would simplifying the import regime for future trade with the countries beyond the EU. (Alan Pearce)

For more information please contact:

Blick Rothenberg Newsroom

David Barzilay – 020 7544 8980 / 07860 322 333 / david@barzilay.co.uk
Julian Menendez – 0207 544 8831 / 07838 547 531 / julian@barzilay.co.uk