#vat

#vat

Being more 'targeted' not permitted under EU laws

A provision in the 2025 budget that would have lowered the threshold below which micro-enterprises are exempt from VAT to €25,000 in annual turnover was suspended until 2026 following protests from small business owners. This provision was expected to generate around €780 million per year in tax revenue. Almost as soon as the budget was passed, that provision was 'paused' following an outcry from small business owners. It was later formally suspended until 2026.

Many don't realise how quickly small bookkeeping gaps can turn into bigger financial problems, especially when deadlines and reporting rules come into play. VAT is one area where mistakes tend to build quietly in the background, often unnoticed until a bill, penalty, or cash flow issue appears. With costs rising and margins under more pressure, keeping your VAT records in good shape has never mattered more. Spotting the early signs of trouble can help you stay organised and avoid avoidable stress later.

A provision in last year's delayed Budget lowered the threshold at which micro-enterprises had to start collecting and paying VAT to €25,000 in annual turnover, rather than the current €37,500 for services and €85,000 for commercial activities. The micro-enterprise status is most commonly used by freelancers, contractors, sole traders and small businesses - it has a maximum earning threshold so most of those on the status are low to medium earners.

The amount of income at which you pay different rates of income tax will still not be increased in line with rising prices. Instead the bands - known as tax thresholds - will stay frozen until 2031. That is three years longer than previously planned. This means any kind of pay rise could drag you into a higher tax bracket, or see a greater proportion of your income taxed than would otherwise be expected.

People who use private taxi operators such as Uber might see the cost of a ride rise after the government closed a rather complicated tax loophole, which could lead Uber and other companies to pay a higher tax rate on their fares. The situation applies to the Tour Operators Margin Scheme ( TOMS), a mechanism originally designed for traditional travel companies bundling services such as hotels and transport into a single sales package.

"We are very concerned at the murmurings around a potential ' taxi tax ' in the upcoming Budget," she said. "The Supreme Court confirmed this summer that long-standing business models used by private hire operators remain lawful and that VAT is not automatically required. That outcome helped protect passengers from fare increases and allowed local businesses to operate sustainably." Barke-Jones

We are again reminding consumers that when buying goods online from outside the European Union, including from the United Kingdom (excluding Northern Ireland), additional costs can arise before your goods are delivered. Customs formalities apply, and VAT is chargeable on all goods imported into Ireland, regardless of their value. Ms Dalton said consumers can avoid unexpected charges when their goods arrive for delivery.

2025 is proving to be one of the most challenging years yet for the hospitality industry in the UK, with the increase in National Insurance contributions and London Living Wage, the decrease in business rates relief, and the 20% rate of VAT putting a huge strain on the industry. Venues continue to close, with two hospitality sites closing per day in the first six months of the year and the hospitality sector accounting for 53% of all job losses in the UK since the Budget.

Nearly all new cars in Norway are electric now, so a plan to phase out subsidies is underway. There's now a proposal to phase out a tax exemption for EVs by 2027. The plan is to lower the threshold for eligibility in 2026 before completely removing this benefit the following year. Norway's finance minister argues the country's transition to electric propulsion is pretty much complete and the incentive isn't needed anymore.

The old age pension is set to rise by €10 in Budget 2026 1,000 additional childcare places Vat rate expected to be cut to 9pc for the building of new apartments and homes €500 cut in student fees expected Mental-health crisis teams to staff A&Es Unlikely to be any cut in cost of childcare A €10 euro increase in core welfare payments will be announced in tomorrow's Budget, as talks go down to the wire.

Rumour has it that Rachel Reeves is limbering up for November with a Budget that will make the taxman's quill squeak like a stuck pig. Property, pensions, profits, pasties - all grist to the Exchequer's mill. The Treasury is leaving no stone unturned, no pocket unpicked, no cupboard unopened. The only thing, one suspects, that remains miraculously safe from her fiscal scythe is Larry the Cat's supper.

A Vat reduction for the hospitality sector, a rise in the minimum wage and the end of the "one-off" cost-of-living packages are among the measures being considered for Budget 2026.

As work becomes increasingly borderless, understanding how VAT applies is critical. The first step is to know where obligations begin and ensure they're addressed before they become a problem. There are two categories of global workers for whom VAT considerations are especially relevant: Employees on international secondments, who remain on their company's payroll while temporarily working abroad, and digital nomads, who operate their own businesses while moving from country to country.

The Government is making a desperate bid to stave off rising energy bills this winter, with plans to extend the lower rate of VAT on gas and electricity.

The Budget is currently earmarked for €1.5 billion in tax cuts next year, but reducing VAT for the hospitality sector could consume €1 billion of that allocation.

In October's Budget, €1.5 billion is allocated for tax cuts next year, but a €1 billion reduction in VAT for hospitality will limit potential income tax cuts.

"VAT is a widely adopted indirect tax that significantly contributes to government revenue by being levied on goods and services at each stage of production and sale."