Practical Details for Business Owners Regarding VAT Change from 17.5% to 15%
Chancellor Alistair Darling's VAT Changes - reduction to 15%
Chancellor Alistair Darling has introduced a new, lower, VAT rate.
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Announced: 24th November 2008 in the pre-budget report. (But leaked a few days
earlier - as always)
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Which Rate of VAT?: Only standard-rated sales are affected.
There are no changes to tax on sales that are zero-rated or reduced-rated for VAT. Similarly, there are no changes to the VAT exemptions.
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Timing: Start Date: New rate applies to sales on or after 1st December 2008
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Timing: Stop Date: The 15% rate will remain until 31st December 2009, and from 1 January 2010 it will revert to 17.5%.
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Official Telephone Helpline: Talk to the taxman by calling the National Advice Service on 0845 010 9000.
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Official Website: The Revenue and Customs web site is your best guarantee of solid information.
See the VAT announcements at:
http://www.hmrc.gov.uk/pbr2008/measure1.htm
See the other pre-budget, follow-up, announcements at:
http://www.hmrc.gov.uk/pbr2008/notes-pdf.htm
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VAT Threshold: This change does not affect the VAT threshold.
Further information
