Logo

Register - it's free | File your tax return online

Home > > Change back to old VAT rate should be ‘delayed'

Change back to old VAT rate should be ‘delayed'

5 May 2009

The government should consider switching the date on which the standard rate of VAT moves from 15 per cent to its former level of 17.5 per cent.

The Chancellor’s intention is for the rate to revert to 17.5 per cent on 1 January 2010.

However, the Association of Chartered Certified Accountants (ACCA) has called on the Chancellor to consider extending the VAT cut into early 2010.

The ACCA said that it believed that the planned switchover date could have an adverse impact on businesses as it falls at the end of the calendar year when many small businesses are busy.

For this reason, the government should look at pushing the date further in 2010, perhaps as late as February, and should make any announcements as soon as possible rather than leave them until the autumn pre-Budget report.

Chas Roy-Chowdhury, head of taxation at ACCA, says: “This potential VAT changeover date needs to be moved well into the New Year, ideally February.

“We have to be mindful that SMEs will be dealing with tax returns at the end of the tax year and payroll returns will come around in April. It all just goes to show how relentless planning, finance and tax issues are for SMEs.”

News - VAT

  • 19 March 2010
    More changes to the option to tax
  • 19 March 2010
    No new taxes and a moratorium on regulations, says BCC
  • 18 March 2010
    Simplified de minimis VAT tests for partial exemption
  • 17 March 2010
    What may the 2010 Budget bring?
  • 11 March 2010
    Deregistering for VAT

Financial Crisis - Effect on Small Business

  • 17 March 2010
    What may the 2010 Budget bring?
  • 17 March 2010
    Higher fees for new workers’ pension scheme
  • 17 March 2010
    Venture Capital Trusts look set to stay
  • 15 March 2010
    Small firms need good broadband service
  • 10 March 2010
    Firms look to marketing to drive business

Financial Crisis - Government Initiatives

  • 19 March 2010
    No new taxes and a moratorium on regulations, says BCC
  • 17 March 2010
    What may the 2010 Budget bring?
  • 17 March 2010
    Higher fees for new workers’ pension scheme
  • 17 March 2010
    Venture Capital Trusts look set to stay
  • 15 March 2010
    Small firms need good broadband service

Spotlight - Credit Crunch

  • 16 March 2010
    Cold weather puts freeze on business
  • 12 March 2010
    Savings rates continue to dip
  • 11 March 2010
    Pension schemes see fall in deficits
  • 10 March 2010
    Firms look to marketing to drive business
  • 10 March 2010
    Budget date set for 24 March

Site Map | Register | Login | Logout | My Profile | Terms & Conditions | Accessibility Statement | Copyright © 2008 Hicks & Company. All rights reserved

Visitor Register Now

  • Home
  • About Us
    • Who We Are
  • Our Services
    • Business Services
      • Audit
      • Bookkeeping & Accounting
      • Business Planning
      • Business Start-up
      • Company Secretarial
      • Corporate Tax Planning
      • International Services
      • Payroll
      • VAT
    • Specialist Sectors
      • Building Profits
      • Investment & Financial
      • Manufacturing
      • Medical Profession
      • Retail
    • Personal Services
      • Estate Planning
      • Personal Tax Planning
      • Retirement Strategies
      • Self Assessment
      • Trusts & Executorships
  • News
    • Firm News
      • Recession news
      • PAYE
      • VAT
      • Personal tax
      • Business tax
      • Business regulation
      • Savings
      • Latest news
      • Current affairs
  • Guides
      • Business start-up
      • Limited companies
      • Business finance
      • Your customers
      • Your employees
      • Recession news centre
      • Partnerships
      • Sales and marketing
      • IT and e-business
      • Business regulations
      • Business and the environment
      • Selling your business
      • Intro to the tax system
      • Planning aspects
      • Home aspects
      • Investments & investing
      • Pensions
      • VCT & EIS
      • 2010 Budget report
      • Pre-Budget report 2009
      • Tax rates & allowances
      • Financial planning guide
      • VAT
      • Year end tax planning
      • PAYE & NI
      • IR35 centre
      • Tax and business calendar
  • Online Service Centre
      • Credit reports
      • Company documents
      • Director reports
      • Marketing reports
    • Online Tax Return
      • Terms & Conditions
      • Features Guide
    • Online Life Insurance
    • Loan
    • Payslip
    • VAT
    • Stamp taxes
    • Savings
    • Business start-up
    • Millionaire
    • Inheritance tax
    • Breakeven
    • Fuel cost
    • Gross profit
    • Vehicle benefit
  • Links
  • Contact Us