Nurseries must heed VAT rise when balancing the books
Tuesday, January 4, 2011
The Forum of Private Business has warned that firms will need to make sure that their accounting system changes and is issuing invoices and recording sales and transactions from 4 January in line with this week's rise in VAT from 17.5 per cent to 20 per cent.
The change only affects items charged at the standard rate of VAT. Goods and services that are zero-rated, reduced rated or exempt will be unaffected. A guide to the VAT change is on the HMRC website at http://www.hmrc.gov.uk/vat/forms-rates/rates/rate-rise-guidance.pdf.
