Short Notice VAT Change? No problem!
Changes to UK VAT
In yesterday's Pre-Budget Report, seen as historic by many, UK Chancellor Alastair Darling announced widespread changes to many areas of the public finances.
Of some concern, because of the short-notice given, is the 13-month temporary reduction of the standard rate of VAT from 17.5% to 15%. The new rate comes into effect on the 1st of December, only 6 days after the announcement.
OK, so we're not dealing with the intricacies of retail pricing and cash sales to consumers, but all the same we're working hard to make sure our users - primarily service-based business owners - have an easy life next Monday.
Our next bite of crisp accounting freshness - "Pouilly-FuissÃ©" - will be deployed on Sunday 30th Nov and include full support for the new rate, including our usual automatic handling of VAT invoices & purchases and support for the new Flat Rate Scheme rates.
To take advantage of the revised software, you'll need to:
- Check the advice here if your invoices cover work that spans the 1 Dec 2008 changeover date, ensuring you set the VAT rate accordingly.
- That's it.
There. That wasn't so difficult was it?
- Video: VAT accounting schemes explained by HMRC
- Cough up! A practical guide to getting paid on time
- Hello FreeAgent, goodbye bank holiday envy!
- Team FreeAgent runs for Mind
- Business basics: how to price your freelance work