Well so it was an official white Christmas, very pretty and stuff! But now I just wish that the council would get out and grit the pavements as I’ve more than once nearly measured my length on the pavements here in Leeds. And unfortunately it looks as though there is more snow and ice to come and it is just bloomin cold.
Anyway there’s lots of stuff on the news and reminders to buy before the VAT rate rise. Remember that in some cases, the change of rate rules will enable suppliers to charge the 15% VAT rate on goods delivered/installed or services completed even if payment hasn’t been made by 31 December. Chances are this would work for the majority of business transactions. Unfortunately when it comes to retail sales then this won’t apply so if you’re looking for a bargain, you’d better make the most of the next couple of days to avoid the VAT rise which the retailers are nearly all promising on 1 January.
And the retailers out there will have a busy time sorting out their IT systems and repricing goods to reflect the new rate. Retailers have to account for VAT at 17.5% on all sales from 1 January regardless of whether their prices have been raised or their systems amended, so I hope you’re all prepared for the change.
It occurred to me that tomorrow is the end of the current 15% era although of course the last time the rate was 15% was in the early 1990s. I wouldn’t bet anything on a return to 15% for a long time with the current economical climate and there were many of us who thought it was just a waste of time in the first place. And of course it falls to us businesses to make sure that we don’t make any errors when the rate rises on 1 January. Remember to check on the HMRC website for the detailed guidance about the change of rate here http://www.hmrc.gov.uk/vat/forms-rates/rates/rate-changes.htm and use the forums for your queries if you need any practical help.
Marie