[poleman]

Just about to do my end of month invoices but the last time vat changed I put out invoices and was told I got it wrong by my customers and had to do the whole lot again!

Do I put out invoices with 20% or 17.5%

I'm confussed.com  any one eles in the same boat!

[Rob_Mac]

VAT rise comes into effect on Tuesday!!!

Rob

[cozy]

If the service was supplied in 2010 and you are invoicing in 2011, the VAT is 17.5%. This will be effective though, if your invoice states that the work was carried out in 2010.

[darren clarke]

cozy is right ,  the work done in 2010 is billed at 17.5  2011 is 20

[Rob_Mac]

That is wrong!!!

Till Tuesday it is billed at 17.5%, not from the beginning of January.

From HMRC website;

The standard rate of VAT is currently 17.5 per cent but increases to 20 per cent on 4 January 2011.

For any sales of standard-rated goods or services that you make on or after 4 January 2011 you must charge VAT at the 20 per cent rate. If you have a cash business and calculate your VAT using the VAT fraction you must use the VAT fraction of 1/6 on your standard-rated VAT inclusive sales from 4 January 2011.

The change only applies to the standard VAT rate. There are no changes to sales that are zero-rated or reduced-rated for VAT. Similarly, there are no changes to the VAT exemptions. Any sales you make at these rates are unaffected by this change.

This guide tells you how to account for the change to the standard rate of VAT. It also tells you where you can get further information.

Always best to check eh!!!!

Rob

[HIGH LEVEL WINDOW CLEANERS (scrimmy)]

That is wrong!!!

Till Tuesday it is billed at 17.5%, not from the beginning of January.

From HMRC website;

The standard rate of VAT is currently 17.5 per cent but increases to 20 per cent on 4 January 2011.

For any sales of standard-rated goods or services that you make on or after 4 January 2011 you must charge VAT at the 20 per cent rate. If you have a cash business and calculate your VAT using the VAT fraction you must use the VAT fraction of 1/6 on your standard-rated VAT inclusive sales from 4 January 2011.

The change only applies to the standard VAT rate. There are no changes to sales that are zero-rated or reduced-rated for VAT. Similarly, there are no changes to the VAT exemptions. Any sales you make at these rates are unaffected by this change.

This guide tells you how to account for the change to the standard rate of VAT. It also tells you where you can get further information.

Always best to check eh!!!!

Rob

so in effect you are wrong?

it says in your statement that any service AFTER the 4th of jan must be at the new rate.....the guys before are talking about the services rendered BEFORE the 4th.

[Rob_Mac]

2011 is 20 - was the statement but it is not till the 4th. Read it! . I don't need to argue I understand it. I think you will find I am correct.

Rob

[poleman]

thanks chaps seems its def 17-5% sent out this month, and 20% next month!

[Rogue Trader]

The VAT Rate is 20% effective from Start of January 2011 , dont forget to change your invoices to read this. Im not gonna argue/quibble over whether it is before the 4th January as we and i am guessing most of you others dont start again til the 4th and ill also bet that most of you the guys on here who actually are VAT registered are a bit long in the tooth for a pointless CIU row. :

[Neil Gornall]

Are you guys who are VAT registered all on flat rate VAT?  The reason I ask is when I registered, the HMRC don’t list window cleaning in their exemptions so my accountant had to guess which category to put me in.

I registered on Dec 1st at 10.5%  However, there is a one per cent reduction in the flat rate percentages for your first year of VAT registration. This means I can use 9.5% until 3 January 2011, then 11% until 30 November 2011 and then 12% after that.
But in relation to the original question... I am aware Invoices still go out at full rate VAT

[formb]

Are you guys who are VAT registered all on flat rate VAT?  The reason I ask is when I registered, the HMRC don’t list window cleaning in their exemptions so my accountant had to guess which category to put me in.

I registered on Dec 1st at 10.5%  However, there is a one per cent reduction in the flat rate percentages for your first year of VAT registration. This means I can use 9.5% until 3 January 2011, then 11% until 30 November 2011 and then 12% after that.
But in relation to the original question... I am aware Invoices still go out at full rate VAT

I was on the flat rate.

Not any more.

[Neil Gornall]

Are you guys who are VAT registered all on flat rate VAT?  The reason I ask is when I registered, the HMRC don’t list window cleaning in their exemptions so my accountant had to guess which category to put me in.

I registered on Dec 1st at 10.5%  However, there is a one per cent reduction in the flat rate percentages for your first year of VAT registration. This means I can use 9.5% until 3 January 2011, then 11% until 30 November 2011 and then 12% after that.
But in relation to the original question... I am aware Invoices still go out at full rate VAT

I was on the flat rate.

Not any more.

Why would that change? is it down to turnover?

[formb]

I am no longer on flat rate after my accountant told me to come off it. Could be turnover, could be high expenditure, I trust my accountant fully.

[Neil Gornall]

I am no longer on flat rate after my accountant told me to come off it. Could be turnover, could be high expenditure, I trust my accountant fully.

 Me to. I think if you find an accountant you trust fully they are well worth whatever they charge.
Similarly I also have a fantastic book keeper/secretary who I trust totally, she has worked for me for about 18 months and as a result my company has improved immensely. I can concentrate on running the business whilst she takes care of the office side of things which I hate like, PAYE, VAT, wages, and making sure all bills are paid on time, (even my personal stuff now) I have not opened a letter in over a year,  Unless I think it may have a cheque in it