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| Are you ready for the VAT change on 4th January 2011 |
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VAT registered?.... things to consider:
1.If you provide a service which spans 4th January then you may time apportion your invoicing before and after the change to apply the different rates. This apportionment must be on a "reasonable" basis;
2. If you operate the "flat rate scheme", new rates will apply from 4th January. The new rates have been published in a separate "technical stuff" posting;
3. If you have any bad debt relief to claim, this must be at the rate applying at the original tax point date;
4. VAT fuel scale charge rates changed on 1st December, again, the new rates have been published in a separate "technical stuff" posting;
5. Be aware, there are anti-forestalling and anti-avoidance measures in place to prevent any advantage being taken of the changes in rates in order to avoid VAT;
6. Please remember to amend your VAT settings if using a computerised accounts package or invoicing system. Help will be available from your software provider, do check out their website. It would make sence to have the instructions ready in advance as no doubt their phone lines will be busy nearer the time.
7. International Sales and purchases: If you provide goods or services abroad (or purchase goods and services from abroad) you need to ensure that you are applying the rules which came into force on 1st January 2010 correctly and be aware of changes coming into force on 1st January 2011. Visit the HMRC.gov.uk website or contact us for more information.
8. E-commerce: Please remember to update your VAT settings if you run an online shop. The VAT rate will typically appear in a control panel, to be applied when a product is placed into the shopping cart. nb. remember to update your terms & conditions pages, if the VAT rate is shown.
9. EPOS: if you run an EPOS system, again remember to apply the change in VAT rate.
Not VAT registered?.... things to consider:
1. Make purchases, particularly large purchases before 4th January to take advantage of the lower VAT rate;
2. The change could put you at a price advantage, think how to make the most of this.
Do call us on 01604 678470 if you have any queries,
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