VAT Increase

The Standard Rate of VAT increased on 4th January 2011 from 17.5% to 20%.  There are a number of things to bear in mind:

1. If you are n the flat rate scheme then please check your new rates.  Indications are that the tax office will be targeting taxpayers using the flat rate scheme to ensure that they are operating the scheme correctly.

2. If you are dealing primarily with non-registered consumers then please be aware of the anti-avoidance provisions designed to ensure that you cannot crystallise a VAT charge at he current rate.  whilst this is still possible then you should be fully aware of how far you can take this.

We have had a link to the tax office's guidance on how to handle the tax change on our links page for some time.  You should check this guidance, and if you want any further information please do not hesitate to contact us.