Chartered Management Accountants and Consultancy Services for Small and Medium Sized Businesses

VAT changes to 20%

The standard rate of VAT is currently 17.5 per cent but will be increased to 20 per cent on 4 January 2011.

For any sales of standard-rated goods or services that you make on or after 4 January 2011 you must charge VAT at the 20 per cent rate. If you have a cash business and calculate your VAT using the VAT fraction you must use the VAT fraction of 1/6 on your standard-rated VAT inclusive sales from 4 January 2011.

The change only applies to the standard VAT rate. There are no changes to sales that are zero-rated or reduced-rated for VAT. Similarly, there are no changes to the VAT exemptions. Any sales you make at these rates are unaffected by this change.

For those clients who  run a computerised accounts system, the procedures for changing the VAT rates will be identical as to when the VAT rates temporarily changed in December 2008. Please see the article below headed 15 % VAT.

If you require any further information, please contact us on 01706 826757

Gallery

Please install Flash® and turn on Javascript.


Recent Articles

Please feel free to browse our latest articles:-

tickNew National Living & National Minimum wage rates from 1st April 2017

tickPossible NIC & tax saving on Director's salary

Tax on dividends from 6th April 2016

Payroll changes from April 2014

Challenging the VAT Inspector

New Government and HMRC announcements

Sage VAT Updates

VAT changes to 20%

Click here to view all of our news articles

See us on You Tube

For a no obligation discussion about how we can help your business,
contact Kenneth or Amanda Aldred here.