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Articles -
VAT
Welcome to one of the
Windermere & Bowness Chamber of Trade Articles pages. Here you will find
articles on VAT.
The views expressed in
these Articles are not necessary those of the Windermere & Bowness Chamber
of Trade and are provide for information only.
 VAT:
Major
Changes to VAT
As from January 4th 2011 the standard rate
of VAT increased to 20%.
The VAT rules for business who:
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Supply services to or receive services
from overseas businesses
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Supply goods to other EC countries
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Reclaim VAT incurred in another EC
country
also change and where, how, and when VAT
is accounted for, completion of EC Sales Lists and reclaiming VAT
incurred in another EC country are all affected. You must consider
now whether the changes affect you and what you need to do to prepare
for them. Further information can be found at:
www.hmrc.gov.uk/vat/
VAT filing and payment
arrangements
Under Government proposals, from 1 April
2013 the way some businesses file their VAT returns and pay any VAT due
will also change:
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all VAT registered businesses with a
turnover of £100,000 or more (excluding VAT); and
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all businesses newly registering for
VAT, whatever their turnover
must file their VAT returns online
and pay any VAT due electronically. If your business falls
into either of the above categories, the changes apply to all returns
covering accounting periods on or after 1 April 2010 and the HMRC will
no longer issue paper returns after this date.
Filing returns on paper will still be an
option for the remaining VAT registered businesses, but this will be
reviewed in the run up to 2012.
From April 1st 2012 nearly all VAT
registered business will have to file their VAT Return online.
As from April 1st 2017, the
registration lower limit is £85,000
with the de-registration level of £83,000.
VAT
Inclusive Calculation
As from the 4th January 2011 the Standard
Rate of VAT in the UK was increased from 17.5% to 20%.
In order to work out the amount of VAT in
an amount that contains VAT, the fraction to use is 1/6th (divide by
6).
Example:
Item costs £120.00 including VAT.
VAT element is 1/6th of £120.00 = £20.00
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