VAT Question From A Publican!

I have just been asked about the VAT increase that is due to happen at 00:01 a.m. on the 1st January 2010 back to 17.5% and how it affect Pubs/Restaurants that are hosting a New Year’s Eve party.   I thought it a good idea to clarify this point for everybody who may be wondering.

The rate is due to change at that moment, but for publicans/restaurants lucky enough (these days) to enjoy a busy New Year’s Eve party at their Premises, [private_basic]exactly when are they supposed to make the VAT rate change?  The answer is simple.  Not until later in the morning of the 1st January 2010.  You will not need to adjust all the prices upward as the clock chimes midnight.  HMRC are allowing existing party’s to continue at the old VAT rate of 15% until they finish in the early hours of the 1st.

Don’t forget to change the prices before you open next though!

I hope this clears the question up.

Please do not hesitate to contact me on 0800 047 0731 if you have any questions about the change in VAT rates.  There was enough confusion when the rate dropped last December but the price of getting it wrong then wasn’t as bad as now… so please ask – even if you are not a client of mine.  I will be happy to explain the rules to you.

~Ray[/private_basic]

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Ray Stewart

Managing Director at Coalville Business Services Limited

I am a qualified Certified Practising Accountant having passed my final exams way back in 1981. I actually can’t believe that was 37 years ago!! Anyway, I am now in my 60’s and I have been running my own business since May 1983. And before you ask, no, I have never regretted a moment of it! Part of the membership requirements of my professional body now dictate that I spend quite a lot of time on “CPD” - continuing professional education (one of their better ideas) - and over the last two years I decided to study business growth and marketing. I have learnt such a lot and that knowledge has radically changed my old “accountants” approach to business. It has made such a difference to the way I work and operate I feel that I just have to pass on this knowledge. It is simply too powerful to hold back!! - but I will try and do it in simple terms rather than expecting you to spend hours, as I had to, working through the difficult language that trainers seem to use to pass on their concepts. I hope you find the blog a useful resource and interesting place to visit as the months pass. I will do my best to keep up the flow - but if there are any topics you would like me to cover, then please let me know. Ray Stewart

Ray Stewart

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