Post Election Budget 2010

VAT

VAT: change of standard rate

It is proposed to increase the standard rate of VAT from 17.5% to 20% with effect for any supply made on or after 4 January 2011. The rate change does not affect either zero-rated supplies nor those supplies subject to VAT at the 5% reduced rate.

VAT Flat Rate Scheme

The VAT Flat Rate Scheme simplifies VAT for businesses with an annual turnover (VAT exclusive) of up to £150,000. The percentages used in the scheme will change from 4 January 2011 to reflect the increase in the standard rate of VAT.

VAT: detailed changes

As previously announced changes will be made early next year to:

• the VAT recovery on mixed use assets
• the place of supply rules for natural gas, heat and cooling
• the definition of aircraft that can be supplied at zero rate
• certain postal services provided by Royal Mail.

---

Also...

Paying too much tax?

We can help. We can give you free unlimited tax, business and accountancy advice, a tax planning service and your own business development team. That's not a bad start, is it? Why not book a FREE consultation with us?

• back |
• top