It’s finally here: at midnight tonight small businesses across the UK must ensure all their prices are in line with the new VAT rate of 17.5%. Hopefully businesses have been able to plan for the change well in advance and as a result won’t find the adjustment too taxing.
However, if you’re still unsure of all the rules surrounding the change then you still have time to visit the HMRC guidance website which provides all the information you need. You can also refer back to our practical guide to handle the change, which gives some easy to follow top tips.
Don’t forget, if you’re open for business tonight then the Treasury has granted a six hours grace period. This applies to pubs, restaurants as well as retail and telecommunication businesses that will be operating beyond midnight.
Good luck and let us know how you get on – we’re keen to hear about your experiences, tell us what went well and what didn’t!
And most importantly, have a very happy New Year!
That was an inspiring post,
Its really confusing that the vat changes seem to have made such a huge difference,
Thanks for bringing this up
Posted by: software development company | 20 January 2010 at 02:32 PM
Hi,
Glad you found the information useful. Indeed, the effects of the VAT change have been quite remarkable resulting in admin headaches for many businesses, especially retailers. It was reported by the Bank of England regional agents' survey this month that around 80% of retailers planned to pass at least a part of the VAT rise on to customers, with almost half planning to pass it through in full: http://bit.ly/8YJ1h1
You can read our Practical tips to handle the VAT rate change for further clarification and check back for more advice later this month: http://bit.ly/1hHbRi
All the best for 2010
The Intuit blog team
Posted by: smallbizmatters | 20 January 2010 at 04:53 PM
This is very inspiring and I hope that my country would adapt this kind of idea. Kudos for sharing!
Posted by: Small Business Cash Advance | 24 September 2010 at 04:20 AM