Prepare Now for the VAT Increase - 01/01/2010

The standard rate of VAT will return to 17.5% on 1 January 2010. Any sales of standard-rated goods or services made on or after this date must include VAT charged at the rate of 17.5%. There will be no changes to zero-rated sales, sales reduced-rated for VAT and VAT exemptions.

It is important that you consider the impact upon your business now, in particular:

• Do you know how to change the VAT rate on your Accounts Software?

• Do you sell goods and/or services on the internet?

• Do you use Excel for your VAT returns or any other financial reporting and forecasting?

• Do you use any other software packages to calculate net and gross VAT figures?

• Do you produce invoices and quotations with VAT amounts displayed?

If the answer to any of the above is YES and are you are unsure of the implications we are here to help.

Here at Clive Owen & Co LLP we have the expertise and experience to help you navigate through the changes in VAT legislation.

Important Information for Clive Owen & Co LLP Clients

• Clive Owen & Co LLP issue Requests for Payment for continuing professional services which are not VAT invoices. A VAT invoice is issued when we receive payment from you. Therefore, all outstanding Requests for Payment as of 1st January 2010 will increase to reflect the new 17.5% VAT rate.

• When payment is received against these Requests for Payment a VAT invoice will be issued showing the new rate of VAT.

• Any outstanding Requests on your account at 31st December 2009 will increase on 1st January 2010. A New statement will be issued giving details of the new amount and providing details of the VAT only adjustment required.

Internet Links

HM Revenue and Customs Guidance on the VAT Increase

Please contact Peter Hogan in Darlington, Nicola Bellerby in Durham or Terry Doyle in York. Alternatively contact us via email vat@cliveowen.com