Please note that all invoices that charge VAT, raised on or after 4 January 2011, should be charged at the new rate of 20%.
Under the usual tax point rules, businesses should use the 20% rate where you supply goods or services on or before 3 January 2011 and then issue an invoice on or after 4 January 2011.
If you use the Flat Rate VAT scheme, the percentage will increase by 1.5%. Therefore, if you are using the "Computer and IT consultancy" rate of 13%, from 4 January 2011, you should use the rate of 14.5%.
If the VAT quarter covers both VAT rates, it will need a bit more attention, as you will need to apply 13% to those invoices raised at 17.5% and 14.5% on those raised at 20%.
The VAT paid under the Flat Rate Scheme is always calculated on the VAT inclusive sales figure.
Also, if you are still in the first year of registration, then a 1% reduction applies to those FRS rates.
If you have any queries in connection with VAT, please contact Michael Kitchen on: michael@stilwellgray.co.uk
Under the usual tax point rules, businesses should use the 20% rate where you supply goods or services on or before 3 January 2011 and then issue an invoice on or after 4 January 2011.
If you use the Flat Rate VAT scheme, the percentage will increase by 1.5%. Therefore, if you are using the "Computer and IT consultancy" rate of 13%, from 4 January 2011, you should use the rate of 14.5%.
If the VAT quarter covers both VAT rates, it will need a bit more attention, as you will need to apply 13% to those invoices raised at 17.5% and 14.5% on those raised at 20%.
The VAT paid under the Flat Rate Scheme is always calculated on the VAT inclusive sales figure.
Also, if you are still in the first year of registration, then a 1% reduction applies to those FRS rates.
If you have any queries in connection with VAT, please contact Michael Kitchen on: michael@stilwellgray.co.uk
All the best.
Richard Stilwell
May we all at Stilwell Gray wish you a Merry Christmas and a Happy New Year.
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