Early hopes of a cut in VAT on energy costs proved to be incorrect, and VAT announcements were relatively few and far between.

The new points-based penalty regime for VAT is confirmed to commence for accounting periods starting on or after 1 April 2022. This regime, which will also be introduced for direct taxes once they are mandated into Making Tax Digital, will see businesses receive a point for missing a submission deadline. There will then be a fine levied when the points threshold for a particular period is breached, depending on how frequently reporting is required, e.g. 4 points for quarterly returns. Points will expire after two years and will not reset upon the occasion of a penalty charge.

The second-hand margin scheme in Northern Ireland will be extended on an interim basis, until such time as the Second-hand Motor Vehicle Export Refund Scheme is implemented.

The is also a new exemption for the import of dental prostheses, retrospective to 1 January 2021.