Happy New VAT Year!

The standard rate of VAT, which fell temporarily to 15%, is due to go back up to 17.5% from the start of the New Year.
HMRC recognise that the change may cause problems for certain businesses at a particularly busy time of year, and has announced a measure designed to help.
Special accounting arrangements for businesses operating beyond midnight on 31 December 2009 effectively defer the start of the new VAT rate for some traders. These mean that pubs, clubs, restaurants and other retail businesses remaining open past midnight on New Year’s Eve will be allowed to continue charging VAT at 15% on their sales until they close or until 6am on 1 January 2010, whichever is the earlier.

Vat rate change and sage update

The rate of vat is changing back to 17.5% from 1st January 2010.

Here is the process to folow to change the vat rate in Sage.

From the settings list (Sage 50 Accounts v16)

• Configuration
• Tax codes
• Highlight the T1 code (should currently say 15%)
• Select edit
• Change rate to 17.5%
• Select OK
• Select apply
• Select close

NB
Best to go back into configuration and tax codes and make sure T1 now reads 17.5%.