New Year - new VAT rate - new ideas

Helping our clients with creative communication includes working to ensure that they and their printed and online sales tools are prepared well in advance of the coming deadline.

Change, whatever its origins, is a key driver for everyone and within business we all need to review and adapt our communications material regularly. With the upcoming New Year revision to the higher VAT rate of 17.5% we’ll be asking our clients to check where they need to make changes to ensure they’re not caught out.

Some businesses in the hospitality sector such as hotels, pubs, clubs and restaurants together with some retail and telecommunication providers are to be allowed to continue charging VAT at 15% into the early part of New Year’s Day (6am on the morning of 1 January 2010 to be precise). Mercifully those given the HMRC 'green light' will not have to take 'Z' readings, cash up and adjust their tills at the chimes of Midnight in between drinks orders. Nor will you receive your mobile phone bill with half a text message to your sister wishing her a happy new year charged at 15% and the remainder at 17.5%!

For the rest of us, however, the standard VAT rate is due to revert to 17.5% at 0.01 am on 31st December 2009 and along with it all the associated time consuming and sometimes costly adjustments to invoicing and accounting systems, tills, price tags, IT systems, e-commerce websites, online brochures and price lists. 

We’ll be advising all our clients to ensure they’re on top of the coming VAT changes by speaking to their accountants and we’ll be talking to them about all their sales materials, any e-commerce issues and how they may need to engage with their clients on the subject.

Rest assured, to help businesses implement the change HMRC will be operating a 'light touch' approach in terms of errors made in the first VAT return after the change (where the error relates to a change of rate issue) but this doesn't mean you should avoid making yourself aware of any relevant changes to your business.

All the strands of business generation are linked and at BIG we’re always happy to offer guidance on this and a wide range of complimentary business issues, so for anyone with questions, queries or those wanting more information about these changes please let me know esther@thebigideascollective.com

Altogether now, “Should auld acquaintance be forgot and never brought to mind? ...”