There are important changes happening to the way VAT is dealt with in 2010. I have listed below 2 of the changes that I feel will have the most impact on self employed tradesmen.
The VAT rate of standard rated goods & supplies was dropped to 15% late last year to help boost the economy and is now set to increase on 1st January 2010 to the previous rate of 17.5%.
You are required to have everything in place to apply the new rate of 17.5% on all standard rated goods & services, including how you display the VAT on all your paperwork & stationary, so hang on before you order that new ream of headed paper or NCR sets and check you won’t be throwing a load of cash down the drain.
Registering for VAT in 2010 or Turnover £100K or more
If you are looking at registering for VAT in the new year, or your turnover is or will be greater than £100,000, be aware that these new rules now affect how you submit returns to the VAT man.
Any business, regardless of turnover, that registers for VAT on or after 1st April 2010 is required to file their returns online.
As of the 1st April 2010 if you are already VAT registered, which I imagine you are, and have an annual VAT exclusive turnover of £100K or more you are also required to submit your return online.
Using YourTradeBase? No Worries!
If you are using YourTradeBase to deal with your business paperwork then there is no need to adjust the VAT rate yourself as we will flick the switch for you when the time comes, and don’t worry about all your current quotes/estimates and invoices as these will all keep the rate of VAT applied when you produced them!
For more info on the VAT change visit the HM Revenue & Customs website.