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Your email address will not be published.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 *

The latest on Xero’s developer platform

If you’ve listened to Rod talk about Xero lately, you’ve probably heard him mention “the end of the beginning”. We’ve built beautiful accounting software and while that’s really cool, we’re only really getting started. That’s as true for Xero’s accounting software as it is for our Developer Platform. Having 500+ certified add-ons and thousands of ...

Trust is imperative when starting a digital business

The rules of trust are changing. Where customers used to trust large financial and commercial institutions without question, now that trust needs to be earned. This is benefiting start-ups and small businesses that offer accountability and a personal, authentic experience. Technology, whether in the form of social media or seamless programming, is greatly contributing to ...

  • Xero
  • by Sarah Allison