The changes to VAT from 17.5% to 20% have come in to effect today – 4^th January 2011. It is vitally important that all accounting software and invoice templates is adjusted accordingly to ensure compliance.

If you currently use the flat rate scheme for your business please do make sure that you know what rate will apply to you.

If you have a cash business and calculate your VAT using the VAT fraction you must use the VAT fraction of 1/6 on your standard-rated VAT inclusive sales from 4 January 2011.

• How to account for the VAT rate change
• What VAT you can reclaim
• How to correct an error on your VAT Return
• Flat Rate Scheme percentage rates from 4 January 2011