Business News

Standard Rate of VAT to Increase

It is proposed to increase the standard rate of VAT from 17.5% to 20% with effect for any supply made on or after 4 January 2011. The rate change does not affect either zero-rated supplies nor those supplies subject to VAT at the 5% reduced rate.

Detailed guidance has been issued by HMRC for businesses on implementing the change.

Links: HMRC Budget note and  HMRC guidance