The way that you have to take into account changes in the standard rate of VAT depending on the type of business you have. Special arrangements for businesses trading on December 31, 2009 will not apply for this rate change.
If you are a retailer you have to Digital Marketing Agencies in Southampton use 20 per level per cent for all takeover you received on or after 4 January 2011. But if your customer pays on or after 4 January 2011 for something that they take (or delivered) before January 4 2011, sales you take place before January 4, 2011 so you have to use a level of 17.5 percent.
If you are a retailer you must clearly indicate your price inclusive of VAT. However, following a change in the VAT rate you will have up to 28 days to adjust your price. Thus, from January 4, 2011 to February 1, 2011 You can put up notices to let your customers know that an adjustment will be made at the cashier to account for changes in the VAT rate.
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Download guidance on retail sales and changes in the rate of VAT from HM Revenue & Customs (HMRC) website (PDF, 227K) – Opens in a new window.
Businesses that issue VAT invoices
You have to use a level of 20 percent for all VAT invoices issued on or after January 4, 2011. But see the page in this book that span sales level changes.
Download guidance on when to start charging a rate of 20 percent from the HMRC website (PDF, 227K) – Opens in a new window.
VAT invoice raised or deposits received before January 4, 2011 for sale you make after that
If you issue a VAT invoice or receive payment in advance before 4 January 2011 for goods or services you provide on or after the date of VAT would normally be due at a rate of 17.5 percent. In certain circumstances the VAT is due at the rate of 17.5 per cent on the date of issue of the VAT invoice or receipt of payment before January 4, 2011 and a surcharge of 2.5 percent became due on January 4, 2011.
Download guidance on pre-invoice or pre-payment rules from HM Revenue & Customs website (HMRC) (PDF, 227K) – Opens in a new window.
Special VAT scheme for small businesses
Cash Accounting Scheme
If you are using the Cash Accounting Scheme you will need to be able to identify the payment received on or after January 4, 2011 relating to supplies made before that date. VAT at a rate of 17.5 per cent will be due on these payments.
Annual Accounting Scheme
installment will not be affected by changes in the standard VAT rate.
Flat Rate Scheme
The percentage of flat rate has been recalculated to reflect the standard rate of VAT from 20 per cent. The new tariffs take effect from January 4, 2011 until further notice.
You can choose to operate the VAT Flat Rate Scheme if you exclusive turnover does not exceed £ 150,000. Score is VAT exclusive turnover that is not affected by changes in the standard rate of VAT.
From January 4th, 2011 you must leave the Flat Rate Scheme if your income (including VAT) exceeds £ 230,000. However, if your earnings exceed this threshold for each of the transactions Digital Marketing Company in Southampton and you hope that your income will fall below £ 191 500 in the next year you can ask to stay in the Flat Rate Scheme. Your request must be in writing.