VAT Changes
In his Pre-Budget Report on Monday 24th November the Chancellor announced that the standard rate of VAT is to be cut from 17.5% to 15% as from 1st December until the end of 2009. At the same time flat rate scheme percentages have been reduced.
The changes represent a potential administrative headache for businesses and particular for retailers who will have to amend their accounting systems, price tags, etc and decide whether after all that they can pass on all or any of the reduction to their customers.
Spencer Gardner Dickens, an Accountancy and Tax Advisors firm based in Coventry, have put together a short guide detailing the VAT change and its implications which we hope will be a helpful at this time: