No: C&E 1                            29 November 1994


                        BUDGET 1994 : VAT

        INCREASED REGISTRATION AND DEREGISTRATION THRESHOLDS

In his Budget statement today, the Chancellor announced that
the VAT registration and deregistration thresholds will be
increased.

The Chancellor's intention is to minimise the administrative
burden  of VAT on small businesses and encourage new start-ups by
increasing VAT thresholds in line with inflation, so that their real
value is   maintained.

From midnight tonight the annual turnover above which VAT
registration is compulsory will increase from Pounds 45,000
to Pounds 46,000, and the deregistration threshold will rise from
Pounds 43,000 to Pounds 44,000. From 1 January 1995, the registration
and deregistration thresholds for acquisitions from other European
Community countries will also rise, in both cases from Pounds 45,000
to Pounds 46,000.


NOTES FOR EDITORS

1.     The estimated cost to the Exchequer of increasing the
thresholds is negligible.

2.     Details for traders are available in Budget notice BN
115/94.



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