Changes to the standard rate of VAT

The standard rate of VAT will be increased from 15 per cent to 17.5 per cent from 1 January 2010. Businesses should be looking at the time of supply rules and tax points under UK law to ensure that as far as possible they take advantage of the lower rate when the change of rate takes effect.

There will be consequent adjustments made to the percentage rates for users of the Flat rate scheme – a special scheme for small businesses and there will also be adjustments to the VAT due under the fuel scale charges for petrol and diesel use for business purposes and to VAT being claimed for motorists using mileage rates which include an element for fuel use for business purposes.

For further information contact Peter Bright in our VAT team.