VAT notes
HMRC has published the latest quarterly edition of VAT notes which includes a summary of recent changes and important notices pertaining to VAT. The main topics covered in this latest edition are as follows:
- Payments by direct debit – Since 1 April 2010 most businesses are required to submit VAT returns and make payments electronically. A reminder of how to make payment by direct debit and sign up for the VAT online service are included in the VAT notes.
- VAT return reminders – HMRC will shortly cease to send out paper reminders that a VAT return is due. Businesses that wish to be sent an email reminder can register using the VAT online service.
- Option to Tax – A number of changes to the option to tax rules became effective from 1 April 2010. These changes included new anti-avoidance provisions and the conditions for revoking an option to tax during the ‘cooling-off’ period and after 20 years have elapsed.
- Partial exemption – A reminder that a number of simplifications to the partial exemption de- minimis rules took effect from 1 April 2010.
- VAT publications – The VAT notes also include a useful list of new and revised VAT publications.
As this edition of VAT notes was published prior to the June Budget, we would like to remind our readers that the standard rate of VAT is set to increase to 20% with effect from 4 January 2011.