Businesses are reminded that the VAT increase to 20% on the 4th January 2011
You will need to consider the amount of extra administration and commercial costs that will be involved.
For any sales of standard-rated goods or services that you make on or after 4 January 2011 you must charge VAT at the 20 per cent rate. If you have a cash business and calculate your VAT using the VAT fraction you must use the VAT fraction of 1/6 on your standard-rated VAT inclusive sales from 4 January 2011
For more information on the VAT increase visit http://www.hmrc.gov.uk/vat/forms-rates/rates/rate-increase.htm
