Business News - January
Online Value Added Tax (VAT) changes for 2010
Change of Vat rate
From 1 January 2010 the VAT rate has reverted back to 17.5% from 15%.
This only affects standard-rated sales. There are no changes to sales that are zero-rated or reduce-rated for VAT. Similarly, there are no changes to the VAT exemptions.
How does this affect you as a sage user.
Your VAT rates in Sage will need changing. If you require any assistance in changing the VAT rate please contact Laura Parry at Clay Shaw Thomas who will be able to assist you with this process.
Alternatively if you have V2007 or above on Sage line 50 accounts, or V14 on Sage instant accounts, and you have Sage cover you can download the ‘VAT change utility’ icon from Sage’s website and it will automatically complete the changes for you using a wizard process.
Changes to VAT Online
The Carter Programme is implementing Lord Carter's recommendations to increase online filing duties for businesses, which were originally accepted by Government in 2006. The recommendations include compulsory requirements for businesses to file their VAT returns online and to make payments electronically.
These amendments will provide new compulsory rules for VAT as follows:
- Online filing of VAT returns and electronic payment of VAT - required for existing businesses with an annual turnover of £100,000 or more for accounting periods starting on or after 1 April 2010.
- Online filing of VAT returns and electronic payment of VAT - required for all new businesses with an effective date of registration on or after 1 April 2010 (with no reference to a set turnover)
If your business was registered prior to 1 April 2010 and has turnover of less than £100,000 (VAT exclusive) you do not need to file online. However, one advantage of online filing is you get a further seven days to file your return after the normal due date (which is one calendar month from the end of the period) so you may wish to consider online filing anyway.
To Register online
In order to be compliant it is important that you register with either the Government Gateway or HMRC Online Services, both of which can be accessed from www.hmrc.gov.uk.
Where we are already engaged to process your VAT returns we will ensure that all your online registration requirements are completed as part of our service.
For Sage Users
You can process your VAT return online via Sage if you have Sage line 50 version 2008 or above and Sage accounts instant V15 and above. If you would like to enquire to upgrade you may well qualify for a discount by purchasing through us as fully accredited Sage Accountant Partner.
How Can Clay Shaw Thomas Help
- We can provide assistance to set your business up for online filing of your VAT returns with HM Revneue & Customs;
- We can provide SAGE software to enable you to prepare and file VAT returns online; and
- We can prepare the VAT returns online for you.
Please contact Laura Parry of this office who will be happy to assist and provide you with a quote.
To find about more about how we can help you, contact us on 01656 867167 or at tellmemore@clayshawthomas.com to arrange a free, no obligation first meeting.
