The VAT goes from 15% to 17.5% on 1st January 2010, are you ready?


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Businesses in Altrincham, or anywhere come to think of it, will need to remember about the VAT rate change which will take effect on 1st January 2010.

 

How to treat the VAT rate increase.

 

FOR VAT REGISTERED COMPANIES:

·         If your customers are consumers ie general public then make sure they are aware of the changes, they may make the 2.5% saving in many cases.

·         Change your computerised systems for the new rate.

·         Change your stationary to show the new VAT rate, ie invoice.

·         Notify all your regular business customer of the change just in case they are non-VAT registered, see below for why.

·         Tell your staff about the change.

FOR NON-VAT REGISTERED COMPANIES:

·         As you will have to pay the VAT and not able to claim it back this means that as of 1st January 2010 you will be paying 2.5% more for you VATed supplies.

·         It is worth thinking about what you buy a lot of and perhaps, cash flow allowing, stocking up and making the saving while you can.

·         If you are think about becoming VAT registered, then talk to a qualified Accountant or VAT specialist, also do the research yourself, www.hmrc.gov.uk should answer most of your questions, they also run courses near Altrincham.

 

Whatever you need to do make sure you do it by 1st January 2010.

 

Thebestof/altrincham is not tax or VAT specialists for full details contact a expert or view the VAT change home page:  http://www.hmrc.gov.uk/vat/forms-rates/rates/rate-changes.htm .

 

Keep Altrincham VAT safe!


About the Author
Adrian B Joined: November 2008     Blog Posts: 35
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Your Comments
Lee B 24 December 2009
Thanks Adrian, what does it mean for those under the tax threshold? will our consumables cost us more? report abuse...
Adrian B 08 January 2010
If you currently are under the £68,000 turnover figure and not Vat registered, then unfortunately you will have to pay the extra 2.5%. A lot of businesses are giving an extra 2.5% saving to make up for it, this however will not last long. As with all purchases it is always worth asking for a discount perhaps even an extra 2.5% is worth mentioning. Someone once said “it is easier to save money than make it" although not completely true in the business world it certainly is surprising what businesses can do to get the sale, especially when sale are lower than normal, give it a go! Figures correct at time of posting Jan 2010. report abuse...
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