The new lower VAT rate does not take effect till Monday.
As a result anyone wanting to buy a high priced item should consider putting off the purchase till after the weekend. But (unless I am mistaken) if the goods or services are not going to be delivered till Monday or later the merchant is in a position to charge VAT at the new rate.
See
http://www.hmrc.gov.uk/pbr2008/vat-guide-sum.pdf
Look in “Are there any special rules for sales spanning the change of rate?”
So I’m off for a few days fishing and sunning myself on the beach and unless otherwise requested will not be doing any work till Monday!!! Thank you Darling
Disclaimer – I’m not an accountant etc so treat this as you would any snippet of gossip overheard on the Clapham Omnibus…..
Tags: Accountant, Array, Few Days, Fishing, Gossip, Gov Uk, Hmrc Gov, Omnibus, Pdf, Snippet, Vat Guide
One thing that is definatly worth thinking about is whether businesses will actually take this VAT change into account at all. I know a number of businesses that I have worked with in the past who have decided to mark their prices up by 2.5% on monday – meaning they can leave everything as it is, charging the same amount, and just rework the VAT numbers they send to the taxman at the end of it.
From the research I have done, and the people I have spoken too, I am not actually expecing to see much change come Monday, or Tuesday, or any time in the next year for that matter.
I’m covering and analysing this in my blog at the moment – let me know what you think, what your oppinions are, and any replies to any of my analysis! 🙂