Insights

You must register your business for VAT if your company's VAT taxable turnover exceeds the registration threshold. This is currently £85,000.

A full enquiry is both costly and time-consuming, for both sides, therefore should a business find itself the subject of one then it will be for a good reason – at least in the HMRC’s eyes.

To help loss-making businesses, legislation is to be introduced to increase temporarily the period for which a business can carry back a loss from one year to three years.

The temporary 5% rate of VAT will apply until 30 September 2021. From 1 October 2021, a new reduced rate of VAT of 12.5% will apply until 31 March 2022.

The Chancellor announced in his 2021 Budget that a number of allowances and thresholds will remain at their 2021/22 levels until 6 April 2026.

In order to be eligible for VGTR, the applying company must be responsible for most of the planning, designing, developing, testing and production of a game

While VAT is charged at every stage that value is added within the supply chain, the final payment is always made by the customer.