Intrastat Changes

There is a reasonably good chance that you will not have heard the expression "Intrastat", let alone know what to do with it! In short, the EU demand that each Member State collects statistical information on trade going between Member States. For certain levels of trade, this is collected using the "intrastat" procedure. Hitherto, the level for both sales ('dispatches') and purchases ('arrivals') was £270,000 annually. The levels are now changing, from 1 January 2010 to £600,000 for arrivals and £250,000 for dispatches. If your sales or purchases exceed those levels, you are then roped into the system with no chance of escape - well, not for a while anyway. Please contact me if you need a more detailed explanation.

www.davebrownvat.co.uk

New Year 2009/10 - VAT rate change

As you may be aware, the VAT rate is going back up, from 15% to 17.5% with effect from 1 January 2010 - that is, from 00.01 on New Year's morning. So do pubs and clubs and hotels have to 'cash up' when they hear the bells? Should they take a "Z" reading in the midst of Auld Land Syne?

Thankfully not.

The Financial Secretary to the Treasury stated that HMRC will allow "a few hours grace" to businesses such as pubs and clubs, to allow them to charge 15% "for a session that goes beyond midnight into the early hours of 1 January."

Needless to say, I was unable to find anything about this on HMRC website, nor was I inclined to phone the National VAT Advice Helpline for confirmation. I'll settle for the wording within Hansard instead.

www.davebrownvat.com