Happy new VAT rate!

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.

One Comment

VAT back to 17.5% – Online accounting software news from Xero
January 1, 2010 at 1:01 pm

[…] together on the subject, we opted to take a small detour around some of the guidance we gave in December’s blog post – the upshot is we chose not to update all your repeating transactions as we said we would […]

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Multi-currency and creating a global accounting platform

Sleeter Report’s Greg Lam recently complimented us on our implementation on multi-currency. We’re thrilled Greg noticed. We believe that your accounting solution needs to be global. Opportunities are no longer limited by borders. To function well in a global marketplace, accountants and bookkeepers need resources. Real-time exchange rates help to understand currency exposure risks for fast, informed, decision ...

Xero is going global in Hong Kong

I recently attended the RISE Conference in Hong Kong with Rod Drury and Victoria Crone. This was a twofold trip for us, make inroads into Hong Kong for Xero and meet with a group of inspired startups at RISE. The big theme at this year’s RISE Conference was globalization. The fact that the conference, which is ...