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VAT changes for 2010

29 December 2009 No Comment

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VAT rate updated to 17.5%

With effect from 1 Jan 2010 the VAT rate returns to the once customary level of 17.5%. It was temporarily reduced to 15% on 1 Dec 2008 as part of the government’s financial stimulus.

All VAT registered businesses will need to charge VAT at 17.5% when appropriate on invoices raised from 1 Jan 2010.

VAT returns on line – soon to be compulsory

In their recent VAT update leaflet, HM Revenue & Customs have told us that all VAT returns will (in future) have to be submitted electronically. We’re not going to wait for the rule to start in 2010/11, we’re going to make progress now! We have three months to go before the end of the 2009/10 tax year and we are writing to the affected clients now. If you’re not yet a client and you want to understand what’s involved with online VAT, check this earlier article.

Posted on 29 Dec 2009 by The Proactive Accountant Dot Com