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04/12/2008 Interest rates cut to 2%

HMRC has announced temporary concessions to assist businesses with the administrative problems of accounting for a change in the standard rate of rate.

These are in respect of the following:

• Electronic tills and cash registers - if your till was printing out receitps after 1 December at the wrong rate, because you were unable to change it in time, you may still account to HMRC for VAT on transaction, regardless of the till receipts using the new fraction of 3/23.
• An extension is being made to the normal 14 time limit which would have applied for raising VAT invoices in respect of goods and services supplied between 18 November and 30 November. You may now invoice at 15% at any time up to 30 days after the supply was made (providing the invoice is raised on or after 1 December 2008).

HMRC has also included some new guidance to both the:

• Flat Rate Scheme and the change in the standard rate.
• Credit Notes and the change in the standard rate.
• Guarantees for Import VAT.

Links: http://www.hmrc.gov.uk/vat/vat-rate-change.pdf