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Happy New Year

3 January 2011 No Comment

There’s a three day period from Saturday 1 Jan through to Monday 3 Jan 2011 inclusive, when the government thinks we don’t do any work! What else would explain the fact that the much talked about hike in the standard rate of VAT to 20% does not actually take effect until Tuesday 4 Jan 2011?

Are you ready? Are you in one of those businesses, like software development, where days of the week mean nothing, and you actually do whatever work you can, whenever you can, and you bill for it whenever the time is right? Yes, thought so! My advice to you is date your invoices 31 Dec 2010 at the old standard rate or 4 Jan 2011 at the new standard rate. Do no billing in that odd 3 day period. And that way, your record keeping and your VAT returns will be simpler.

Of course, if you’re a stickler for accuracy, there is nothing wrong in doing an invoice on a bank holiday. It’s just that on this occasion you will need to take extra care with preparing the VAT return that includes January 2011. Our software and processes will take this in their stride. Will yours?

And another thing! The percentages for the Flat Rate Scheme are also changing. There’s a run down of the new rates over on the Bookkeeper140 site.

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