Accounting
& Financial News
Use
of Home as Office
05 Jan 2010
For
a self employed individual, where part of the home is used by their
business, they may be able to claim a deduction for the costs relating
to that use. For our full article, click
here
VAT - Reversion Of The Standard Rate To 17.5%
01 Jan 2010
The VAT rate reverts back to 17.5% with effect from 1st January 2010.
HMRC have produced an excellent guide to the change, available on
their website.
It is interesting to note, however, that HMRC have not as yet
published the rates for the Flat Rate Scheme which suggests that this
will not be a simple reversion to the pre-December '08 regime. We
will update you once these have been published.
Basic
rules
1.Retailers should start accounting for VAT at 17.5% with effect
from 1st January, using the VAT fraction 7/47ths.
2.
For all other businesses issuing VAT invoices after 1st January,
they should be at 17.5%, unless the goods/services were supplied
before the rate change. You can then choose to charge at 15%.
3. Refunds or credit notes should be dealt with at the same rate
originally declared or invoiced
4. Invoices issued for 12 months in advance, with monthly payments
plus VAT must show VAT at 15% for all monthly payments up to 31st
December 2009. All payments after that date must be at 17.5%
5. Sales of tickets to events (theatre, cinema, football season
tickets) before 1st January 2010 will attract VAT at 15%, even if
the event takes place after the rate change in 2010. The tax point
is the receipt of payment.
Remember
The increase in VAT will lead to changes to the Flat Rate Scheme percentages
and to the Fuel Scale Charges - all effective from 1st January 2010.
Those people, whose VAT returns span the change, will have to carry
out two separate
For
a look at the Pre Budget Report from Dec 2009, click
here
