The standard rate of VAT is increasing on 4 January 2011.

The standard rate of VAT is currently 17.5 per cent.  This is increasing to 20 per cent on 4 January 2011.  Therefore all sales of standard-rated goods or services that you make on or after 4 January 2011 must charge VAT at the 20 per cent rate.

For cash businesses VAT must be calculated using the VAT fraction of 1/6 on standard-rated VAT inclusive sales from 4 January 2011.

Guidance on how to account for the change and further information can be obtained from the HM Revenue & Customs link below.

If you should have any queries or concerns you wish to discuss please contact your usual Wilder Coe LLP contact in the first instance.

LINK: HMRC guidance