VAT Standard Rate 20% from 4 January 2011
Mon, 10 Jan 2011 16:07:00
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The standard rate of VAT is currently 17.5 per cent but increases 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. If you use the Cash Accounting Scheme you will need to be able to identify payments received on or after 4 January 2011 that relate to supplies made before that date. VAT at a rate of 17.5 per cent will be due on these payments. The flat rate percentages have been re-calculated to reflect a standard rate of VAT of 20 per cent. The new flat rates therefore also apply from 4 January 2011.  |
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