HMRC has issued Revenue & Customs Brief 68/09 (4 November 2009) giving details of two specific issues relating to the re-introduction of the 17.5% rate on 1 January 2010.
First, pubs, clubs, restaurants and other similar retail businesses open over the new year on 31 December 2009 may account for VAT at 15% on sales made up to the earlier of closing time of the 31 December session or 6am on 1 January 2010. Telecommunications businesses may account for VAT at 15% on voicecalls and texts made and billed up until 6am on 1 January 2010. Details of the businesses affected and conditions are set out in the Brief 68/09.
Second, HMRC have announced that a “Light Touch” will apply to errors arising from the change of rate on the first VAT return after the change in rate.
Revenue & Customs Brief 68/09 can be found on the HMRC newspage here http://www.hmrc.gov.uk/briefs/vat/brief6809.htm