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The standard rate of VAT will be reduced
from 17.5% to 15% for the period 1
December 2008 to 31 December 2009. The
rate will then revert to 17.5%. No changes
have been made to the 5% reduced rate or
the 0% rate. The government will
introduce ‘anti-forestalling legislation’
to prevent abuse of the reduction in the
standard rate of VAT.
The percentages applicable to those
businesses operating the flat rate scheme
will be reduced with effect from 1
December 2008.
The transition to the new rate will
cause issues for all businesses. We have
provided a link to HMRC guidance but
please do get in touch if you would like
some help in this area.
We are also including HMRC’s guide for
consumers, so you are aware of how the
changes will impact you personally.
Internet links:
HMRC VAT changes,
HMRC detailed guide and
HMRC consumer guide |
