On January 1st 2010 the standard rate of VAT is returning to 17.5%, so you’ll need to apply the 17.5% rate to all sales of standard-rated goods and services taking place on or after that date.
The new rate should be applied to all takings received and all VAT invoices you issue to other VAT registered businesses on or after January 1st 2010.
There are however a few exceptions to the rule, one of which being you should account for 15% on VAT invoices where you provided goods or services before January 1st 2010 but don’t invoice customers until after that date.
Thankfully Move Administer has a VAT Adjustments option that will process all additional services, unaccepted quotations, unaccepted quoted additional services, unaccepted trade quotations, active storage jobs and active self storage jobs (if applicable), changing VAT rates and recalculating totals where necessary.
For more information on the forthcoming VAT rate change go to http://www.hmrc.gov.uk/vat/forms-rates/rates/rate-changes.htm with a more indepth guide available at http://www.hmrc.gov.uk/vat/forms-rates/rates/rate-rise-guidance.pdf#sec30.
