Quarterly News

Ready Steady VAT

First quarter

1 January 2010 heralds the restoration of 17.5% as the standard rate of VAT, the effect of which is covered on the back cover of this newsletter. It is also the start date for the package of cross border VAT changes announced initially at Budget 2009 and now in Finance Act 2009.

For any business involved in providing or purchasing international services, a review of the impact of these changes on their VAT accounting is essential. The key areas of change include:

• the place of supply of services rules
• the time of supply of services rules
• the reporting requirements and deadlines for EC sales lists
• VAT refund procedures where VAT is paid in another EU member state.

Second quarter

For VAT accounting periods commencing 1 April 2010, returns will have to be filed online where annual turnover (exclusive of VAT) exceeds £100,000. Electronic payment will also be required. The online filing requirement will also apply to all newly registered businesses from that date.

This is subject to HMRC's own caveat that 'all necessary regulations are passed' in time. All affected businesses should receive correspondence advising of the changes early in 2010.

News Highlights

Plant capital allowances

Have you installed new 'plant' in a building used for the purposes of your trade recently? The read on.

Every pound counts

The AIA has now been increased from £50,000 to £100,000 in the Finance Act 2010.

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