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VAT increase 04th January 2011

Stephanie Wade - Monday, November 22, 2010

20% HMRC VAT increase – use it to make money

If your business is VAT registered – increase your profit

VAT will increase to 20% on the 04th January 2010. If you are VAT registered you will have to charge this
to your customers. If your customers are the general public or non VAT registered businesses then you can save
them money and increase your turnover by invoicing and getting the payment before the 04th January 2011.

To give an example of this: if your business makes wedding dresses to save your customer 2.5% of the cost
Ask your customer to pay the deposit and the remaining of the dress by the 04th January 2011
and they will save 2.5% on the cost of the dress.

If you are a training company or events company then ask for payment to be made by the 04th January 2011
to save your clients 2.5%.
The same rules applies to all VAT companies selling to non VAT registered businesses or the general public.

HMRC has brought in VAT anti avoidance www.hmrc.go.uk measures regarding the increase in VAT to 20%. If your customer has paid in advance for the services or goods these MUST be delivered or services performed by the 04th July 2011.   If they are not then 20% VAT will have to be applied and the difference must be accounted for.

If your business is not Vat registered – save money

If your business is not VAT registered and you buy in goods and services the same rule will apply. Buy the essentials that you need ie letterheads, business cards, envelopes you will save 2.5% on your costs.  That’s well worth having.

More info at: www.acplusuk.com

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