CHARTERED ACCOUNTANTS 
CHARTERED TAX ADVISERS REGISTERED AUDITORS
01628 665432
CHARTERED TAX ADVISERS REGISTERED AUDITORS01628 665432
CHARTERED TAX ADVISERS REGISTERED AUDITORS01628 665432
Home > > Emergency Budget 2010: VAT to rise
22 June 2010
As had been expected, the Chancellor has chosen to raise the basic rate of VAT, from 17.5 per cent to 20 per cent.
The change takes effect from 4 January 2011.
The move brings the UK rate in line with that of the EU average.
The 2.5 per cent increase should boost government income by as much as £13 billion a year.
There had been speculation whether the Chancellor would introduce an increase in one step or stagger it across several years.
The one-step introduction will mean a quicker rise in government income, while also saving businesses the administrative costs of managing rises on a yearly basis.
Zero rates supplies, such as food, books and children's clothing, exempt supplies and reduced rate items are not affected by the change.
The cash accounting and the annual accounting VAT schemes are also not changed.
However, flat rate scheme rates have been recalculated to take the increase into account.
For further details email Eacotts on services@eacotts.com or call 01628 665432
Eacotts Chartered Accountants and Chartered Tax Advisers - Servicing the Thames Valley, Berkshire, Buckinghamshire, Slough, High Wycombe, Maidenhead, Marlow, Uxbridge, Windsor and the UK.
This document is for guidance only and professional advice should be sought before acting on the information contained. No responsibility will be accepted by Eacotts for loss occasioned as a result of action taken, or refrained from, in consequence of the contents
Eacotts Limited is a company registered in England and Wales.
Company number 4708201. Registered Office: Grenville Court, Britwell Road, Burnham SL1 8DF
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