HMRC Guidance on 17.5% VAT rate

HMRC have published detailed guidance concerning the re-instatement of the 17.5% Standard Rate of VAT on 1 January 2010.

As well as general advice for businesses, the guidance also covers commentary on specific businesses and transactions, as well as special VAT accounting schemes. There is also commentary on the anti-avoidance rules included in FA2009, intended to prevent artificial transactions benefitting from the lower Standard Rate.

The guidance can be viewed at

http://www.hmrc.gov.uk/vat/forms-rates/rates/rate-rise-guidance.pdf

Giving your clients as much warning as possible may present the opportunity to advisers to provide useful advice to their clients in the period leading up to the change. PTC can of course provide support. Please contact us to discuss.