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Budget 2021: VAT

The VAT registration threshold will remain at £85,000 for a further two years, i.e. until 31 March 2024. The corresponding deregistration threshold will also remain at its current level of £83,000 for two years.


The 5% reduced rate for hospitality, holiday accommodation and attractions is extended to 30 September 2021. There will then be an interim rate of 12.5% for 6 months.


The scope of Making Tax Digital for VAT will be extended to all registered businesses from 1 April 2022. Until then, only businesses that are compulsorily r

egistered are mandated.

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