Advice to Members Re VAT Rate Change
On 01-December-2008 there will be a temporary reduction in the rate of VAT from 17.5% to 15%.
HMRC have issued some helpful notes which give clear guidance upon the subject and these can be found at:
In particular you are referred to the Pre Budget Report PBR – VAT Rate Changes.
If you open this document it provides a further link called “A Technical Guide For Business” as a pdf file. Within this file it is recommended that you look at Section 3 in particular section 3.3.2 “Single Supplies Carried Out Over A Period Of Time”.
In addition you are also recommended to have a look at Annex B which helps explain when the supply takes place.
HMRC are also writing to most businesses and for a simple explanation pro temps you can also download Questions and Answers For Business.
If you are in any doubt or want detailed advice we suggest you consult your VAT advisor or HMRC.
See Also: VAT: Withdrawal of Staff Hire Concession