The VAT standard rate will increase to 17.5 per cent at midnight on 31 December. We already have legislation to effect the change in the Finance Act 2009. There is also legislation intended to prevent businesses manipulating the change in rate to the benefit of VAT blocked customers – this anti forestalling legislation is the subject of a separate article.
Government announced on 3 November that special arrangements would apply to some businesses which remain open for business across midnight on 31 December. The special arrangements are intended to make it easier for pubs, clubs and hotels to adjust their VAT rate charged by the till at a more convenient time than just as midnight strikes on Big Ben.
So in order to smooth the transition, HMRC will permit businesses which are open acros...
About Rebecca Benneyworth
Rebecca trained in London with Kidsons and, on qualifying, spent some time as Chief Accountant of a manufacturing company. She now has her own small practice in Gloucestershire that comprises of owner managed businesses and small companies.
She also lectures extensively for a range of professional bodies, accountancy firms, commercial organisations and the Inland Revenue. Demand has grown for Rebecca on the lecture circuit where she is well known for her refreshing, enthusiastic and entertaining presentation style as well as having a practical and down-to-earth approach to tax.