VAT RATE CHANGE

On 4 January 2011 the standard rate of VAT increases from the present 17.5% to 20%.

For those of you who may have missed our previous notices about this change and its effects, you may like to download HMRC’s comprehensive guide on the change that can be found at:

http://www.hmrc.gov.uk/vat/forms-rates/rates/rate-rise-guidance.pdf

Readers should also re-examine their use of special VAT schemes. It’s by no means a certainty but there may be circumstances when your present choice of special scheme may no longer be appropriate.

The schemes include:

1. Cash Accounting
2. Flat Rate Scheme
3. Annual Accounting

And of course there are opportunities to combine the benefits…

If you need assistance with changes to your accounting software when the rate changes in January 2011, or if you would like a review of your VAT special scheme strategy, please call.

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