Spring Budget – 15 March 2023

As one year ends, we start with dates for the diary in 2023 and the Spring Budget is one to note for us in the VAT profession. VAT revenues for the Treasury are on the rise – partly driven by price inflation pushing up the associated VAT charges, especially in the energy sector. VAT remains a significant contributor to UK Tax revenues overall delivering £107.6b of revenue in the 8 months to November 2022 - £92m higher than the same period a year ago.

Whilst the UK government does have the ability to move more supplies of goods and services into the Zero VAT liability range now the UK is outside of the European Union decisions in this regard have been limited to date. In addition, there is always the tax implications for revenue for the Treasury to consider.

It’ll be interesting to speculate what may arise in the Spring Budget – but we’ll leave that for next year – enjoy your Christmas between now and then.

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