Quick File

Increase in the standard rate of VAT

20th December 2010.

HM Revenue and Customs will increase the standard rate of VAT from 17.5% to 20% on the 4th January 2011. Many businesses large and small will be returning from the Christmas break with the unenviable task of updating all their systems and point of sale material before the January sales kick off. Admittedly VAT has moved around a little bit over the last two years so most business should be rather familiar with the drill by now.

As far as Quick File goes you can store up to four different tax rates within the system at any time. All new accounts created after the 4th of January will setup a default 20% code for users within the United Kingdom. If you already have a Quick File account then you will need to add in a new code for the 20% rate or update your existing 17.5% code.

Please note that all invoices created on or after the 4th of January must account for VAT at the new 20% rate.