Pictured: Faye Armstrong
H M Revenue & Customs have announced a measure to help businesses such as bars, restaurants and retailers cope with the rate of VAT going back up to 17.5% on 1 January 2010.
In the unusually helpful move, most retail and hospitality businesses which stay open past midnight on new year’s eve will be allowed to charge VAT at 15% for a few extra hours. The extension will last until they close on 1 January or until 6am if earlier. Any takings after this time will be subject to VAT at 17.5%.
This concession will be welcomed by those in the hospitality industry who would otherwise have had the headache of splitting the night’s takings between those earned before midnight and those earned afterwards.
Faye Armstrong, VAT advisor at Dodd & Co Chartered Accountants said “The increase in the VAT rate next year will cause as many problems as the decrease did last year. Hopefully this concession will solve at least one of them”.
Faye is a Manager at Dodd & Co and a VAT specialist. She provides advice to help businesses plan ahead to minimise VAT costs, and to help businesses ensure that they comply with VAT law. To contact Faye please telephone 01228 530913 or email faye@doddaccountants.co.uk.
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