In just over two weeks at the stoke of midnight on December 31, the UK’s standard rate of VAT will flip back to 17.5%; here’s what Xero customers in the UK need to know..
- The standard rate of VAT was temporarily reduced to 15% on 1 December 2008 and it will return to 17.5% at 12:00am on January 1, 2010
- Any Xero account (active or archived) that has a default VAT rate of 15% will be automatically updated to 17.5%
- Any price list item that has a default VAT rate of 15% will be updated to 17.5%
- Any repeating invoices that have a default VAT rate of 15% will be updated to 17.5%
HM Revenue & Customs has its own rate change guidance on how to treat certain trading scenarios on January 1, but as far as Xero is concerned it’s pretty straight forward and the rate switch will be automatically taken care of for you at 12:00am on New Year’s Day.
But please shout if there’s anything else you’d like to know for January 1.