A number of Flat Rate VAT Scheme percentages have changed under the Government's temporary reductions for hospitality, holiday accommodation and attractions ...
I'm always happy to help with a handholding session to explain the changes to Flat Rate VAT!
From the 15th of July 2022, the Government reduced the UK VAT rates from 20% to 5% for hospitality, holiday accommodation and attractions. The new temporary rate applied until the end of September 2021 when an interim rate of 12.5% was introduced for another 6 months.
"The interim rate ended on the 31st of March 2022!"
This means that if you use the Flat Rate VAT scheme to simplify your VAT calculations, you need to be aware of these changes, which return to their previous rates from the 1st of April 2022.
If your accounting period has spanned two different rates then HMRC says that the first calculation should start from day one of your accounting period to the last day of the flat rate. The second calculation should start from the date of the new flat rate to the end of your accounting period.
Where your accounting period spans two different rates, current guidance from HMRC states that, "The first calculation should start from day one of your accounting period to the last day of that flat rate. The second should start from the date of the new flat rate to the end of your accounting period."
"Are you affected by the rate change?"
Don't worry as I'm always happy to help with a handholding session to explain the changes and ensure your Sage or Xero accounting system is set up correctly so your VAT returns are correct.
Until next time ...
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about these changes to Flat Rate VAT, it may be a great idea to give me a call on 01604 217365 and let's see how I can help you.
Alison loves bookkeeping and supporting bookkeepers. She has been helping clients to be better bookkeepers in Sage 50 for over 24 years and has been Xero Accredited in accounts and payroll for a number of years too.
She specialises in a very unique hand-holding method of training, helping bookkeepers and business owners to use their accounts software as and when they need support in setting up and producing their invoices, reports and financial information.
Alison combines her role at Silicon Bullet with her Forever Living network marketing businesses and is often to be seen at business networking meetings as she likes to keep busy.
You know what they say: if you want something done well ask a busy person!
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