RCB/68/09 VAT—return of standard rate to 17.5 per cent on 1 January 2010 – measures to help businessRevenue & Customs Brief, Issue 68. 5 November 2009This Brief explains two HMRC measures designed to assist businesses in implementing the return of the standard rate of VAT to 17.5 per cent. It also includes details of the consultation currently being carried out by the Department for Business, Innovation and Skills (BIS) about a proposal to amend the Price Marking Order 2004. BackgroundOn 1 December 2008 the standard rate of VAT was temporarily reduced to 15 per cent. It reverts to 17.5 per cent on 1 January 2010. HMRC recognises that the date of the change may cause problems for certain businesses at a particularly busy time of year so we have introduced two measures to help business to implement the change. These are: — special accounting arrangements for businesses operating beyond midnight on 31 December 2009; — the “light touch” to be operated by HMRC audit staff in dealing with errors arising out of the rate change.Further details on each of these are provided below. 1. Special accounting arrangements for businesses operating beyond midnight on 31 December 2009Retailers The
Revenue & Customs Brief, Issue 68. 5 November 2009
This Brief explains two HMRC measures designed to assist businesses in implementing the return of the standard rate of VAT to 17.5 per cent. It also includes details of the consultation currently being carried out by the Department for Business, Innovation and Skills (BIS) about a proposal to amend the Price Marking Order 2004.
On 1 December 2008 the standard rate of VAT was temporarily reduced to 15 per cent. It reverts to 17.5 per cent on 1 January 2010. HMRC recognises that the date of the change may cause problems for certain businesses at a particularly busy time of year so we have introduced two measures to help business to implement the change. These are:
— special accounting arrangements for businesses operating beyond midnight on 31 December 2009;
— the “light touch” to be operated by HMRC audit staff in dealing with errors arising out of the rate change.
Further details on each of these are provided below.
The
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