Tax Tip Week 38 - Profit from the Increasing VAT rates 2010
As confirmed in the Chancellor's Pre Budget Report, the standard rate of VAT reverts back to 17.5% on 1st January 2010.
HM Revenue and Customs have also revised the VAT Flat Rate Scheme percentages and some business will actually have an increase in their VAT FRS surplus, albeit taxable!
- You should charge VAT at the rate of 17.5% on any sales of standard rated goods or services that you make on or after 1 January 2010
- The change in the standard rate of VAT does not affect sales of goods or services that are Exempt or charged at another rate of VAT i.e Zero rated and reduced rated
- The VAT return VAT 100 remains unchanged. You will continue to receive it following the same monthly, quarterly or annual pattern. Payment due dates also remain the same
For full information, please see our guide - VAT Standard Rate Increase 2010