|
|
|
|
|
PRE-BUDGET REPORT 2009 VAT MEMO 2009-2010 |
|
Newsletter Issue 2 |
|
December 2009 |
|
Rate increase and the flat rate scheme See VM ¶4635, ¶9979 As expected, the standard rate of VAT will revert to 17.5% on 1 January 2010. One effect of this will be to increase the percentages used under the flat rate scheme. HMRC have taken the opportunity to amend some of these rates slightly to reflect up-to-date business data. The rates from 1 January 2010 are shown below.
|
|
185 PARK STREET BANKSIDE LONDON SE1 9DY (T) 020 7803 4666 (F) 020 7803 4699 |
|
Disclaimer This newsletter is provided on the understanding that the information contained within it is for guidance only, and that the publisher is not in business to provide legal or accounting advice or other professional services. Readers entering into transactions on the basis of, or otherwise relying on, such information should seek the services of a competent professional adviser. While every care has been taken to ensure the accuracy of the contents, the editors and the publishers cannot accept responsibility for any loss occasioned to any person acting or refraining to act as a result of any statement in this newsletter. |
|
Tax Memo 2009-2010 has been fully revised and updated to reflect law and practice as at the date of Royal Assent to the Finance Act 2009, and includes commentary on the: - New benchmark system for employee subsistence expenses - Restriction of tax relief available on pension contributions made by higher earners and the special annual allowance - Abolition of the commissioners’ system for tax cases and introduction of the new tribunals - Implementation of the new harmonised system for tax penalties
|
|
Tax Memo 2009-2010 |
|
Benefits: Book and online / 100% reader-friendly / Regularly updated |
|
The Chancellor stated in his Pre-Budget Report that apart from the pre-announced rate increase he would make “no other changes in VAT”. Often there are hidden surprises in the HMRC documentation that accompanies the Chancellor’s speech but not this time. |
|
Category of business |
Appropriate percentage |
|
Accountancy or book-keeping |
13 |
|
Advertising |
10 |
|
Agricultural services |
10 |
|
Any other activity not listed elsewhere |
10.5 |
|
Architect, civil and structural engineer or surveyor |
13 |
|
Boarding or care of animals |
10.5 |
|
Business services that are not listed elsewhere |
10.5 |
|
Catering services including restaurants and takeaways |
11 |
|
Computer and IT consultancy or data processing |
13 |
|
Computer repair services |
9.5 |
|
Dealing in waste or scrap |
9.5 |
|
Entertainment or journalism |
11 |
|
Estate agency or property management services |
10.5 |
|
Farming or agriculture that is not listed elsewhere |
6 |
|
Film, radio, television or video production |
11.5 |
|
Financial services |
12 |
|
Forestry or fishing |
9.5 |
|
General building or construction services1 |
8.5 |
|
Hairdressing or other beauty treatment services |
11.5 |
|
Hiring or renting goods |
8.5 |
|
Hotel or accommodation |
9.5 |
|
Investigation or security |
10.5 |
|
Labour-only building or construction services1 |
13 |
|
Laundry or dry-cleaning services |
10.5 |
|
Lawyer or legal services |
13 |
|
Library, archive, museum or other cultural activity |
8.5 |
|
Management consultancy |
12.5 |
|
Manufacturing fabricated metal products |
9.5 |
|
Manufacturing food |
8 |
|
Manufacturing that is not listed elsewhere |
8.5 |
|
Manufacturing yarn, textiles or clothing |
8 |
|
Membership organisation |
7 |
|
Mining or quarrying |
9 |
|
Packaging |
8 |
|
Photography |
10 |
|
Post offices |
4.5 |
|
Printing |
7.5 |
|
Publishing |
10 |
|
Pubs |
6 |
|
Real estate activity not listed elsewhere |
12.5 |
|
Repairing personal or household goods |
9 |
|
Repairing vehicles |
7.5 |
|
Retailing food, confectionary, tobacco, newspapers or children’s clothing |
3.5 |
|
Retailing pharmaceuticals, medical goods, cosmetics or toiletries |
7 |
|
Retailing that is not listed elsewhere |
6.5 |
|
Retailing vehicles or fuel |
6 |
|
Secretarial services |
11.5 |
|
Social work |
10 |
|
Sport or recreation |
7.5 |
|
Transport or storage, including couriers, freight, removals and taxis |
9 |
|
Travel agency |
9.5 |
|
Veterinary medicine |
10 |
|
Wholesaling agricultural products |
7 |
|
Wholesaling food |
6.5 |
|
Wholesaling that is not listed elsewhere |
7.5 |
|
1. “Labour-only building or construction services" means building or construction services where the value of materials supplied is less than 10 per cent of relevant turnover from such services; any other building or construction services are "general building or construction services". |
|