There are a number of changes to VAT from1 January 2010 and 1 April 2010.

1st January Changes

1) The VAT rate will increase back to 17.5% from 1 January 2010. If you are on the flat rate scheme, your rate will also change. Please note this will not necessarily just revert to the rate that applied until 1st December 2008.

If we prepare your VAT returns, we will adjust this accordingly. If you prepare your VAT returns and need some advice, please contact us. Or, please use the link below for further information.

http://www.hmrc.gov.uk/pbr2009/pbrn33.pdf

2) From this date the majority of sales of services to EC member state countries are reportable on an ESL (EC Sales List), VAT form 101.
If you believe that you or your business will be affected by this change, please contact Peter or Sara for more information. Or further information can be found using the link below.

http://www.hmrc.gov.uk/vat/place-supply-services.pdf

1st April Changes
The deadline for online VAT returns is approaching. Please follow the link under Mandatory Online VAT Returns.

If you have any questions on any of these matters or anything else, please contact us.

Online VAT filing will be mandatory for many businesses from 1 April 2010.

If your business falls into one of the following categories:

• All newly registering businesses regardless of turnover
• All VAT registered businesses with an annual turnover (exclusive of VAT) of £100,000 or more.

If we currently prepare your VAT returns, we will organise online registration for you and will discuss this with you when we prepare your next return.

If we do not currently prepare your VAT returns, and you would like some assistance with this, please contact Sara Nevett (sarar@chambersand.co.uk). We will however be talking to all clients about this matter before the implementation date.

Private companies now have nine months to file their accounts. The shortened deadline applies to accounting periods commencing on or after 6 April 2008. Accounts which are filed late will be liable to fines under the new late filing penalty regime. Fines rise steeply from £150 to £1500, depending on the delay in filing. Companies House also have the power to double fines, if accounts were also filed late in the previous year.

This change is part of the main and final implementation of the Companies Act 2006. Companies House has provided a colourful leaflet summarising key changes which come into effect from 1 October 2009.

Cash is the lifeblood of any business and if it's not flowing there's trouble. VAT, corporation tax and Self-assessment are lumpy liabilities that can cause stress to anyone. Here's a list of practical tax administration ideas that can be used to ease cashflow problems:

1) Change your "VAT stagger" anyone with a VAT periods: Jan-Mar, April-June, July-Sept and Oct-Dec finds themselves facing VAT  and Self-liabilities in January and July.

2) Pay VAT electronically  -The VAT man allows you an additional 7 calendar days, if you pay electronically.

3) Phone the Revenue Business Support Service (0845 302 1435). If you can't pay all your tax on time, phone this service before the liability becomes due. Many clients have found them genuinely helpful in allowing delayed payment of liabilities. Interest is charged on late payments, but provided contact is made before the liability is due, a "time to pay" arrangement with the VAT man will not lead to a default surcharge. Similarly, Income Tax surcharges will not be applied provided a "time to pay" agreement is entered into before the relevant surcharge date AND the terms of the agreement are adhered to. Revenue staff have been instructed to be flexible in their approach, please make sure you do not set yourself an unrealistic payment plan, they will probably agree a much easier one. 

In the olden days, the Revenue sent out payslips together with a handy prepaid envelope just before the liability became due. The payslips are still being issued, but now you have to stick a stamp on the envelope. The Revenue really don't want you to pay by post anymore, they'd like you to set up a direct debit to allow them to help themselves. Not many have taken that option, but most find paying electronically more convenient that writing cheques. This link sets out them alternative electronic methods of payment: Paying HMRC. Please note that the Revenue changed their bank account on 6th April 2009 and have now opened accounts with Citi and RBS, so if you already pay self-assessment, corporation tax or PAYE electronically, you may need to change existing BACS details.