The Return of Standard Rate VAT Takes Place 1st April 2022
Need to change your VAT rates? Don’t panic we are here to assist with our step-by-step guide of how to make a mass change to VAT rates on your back office.
On 15th July 2020, VAT rates were cut as an urgent response to the pandemic. This affected hospitality, hotel and holiday accommodation sectors as well as admission to certain attractions. Aimed to boost customer demand the VAT was a welcome cut from 20% to 5%.
Following that, in the spring 2021 Budget an extension to the 5% rate was announced until 30 September 2021 with the VAT rate for the sector increasing to 12.5% from 1 October 2021 until 31 March 2022.
From the 1st April 2022, those who benefitted from the reduced VAT rates such as restaurants, cafes, pubs, hot food take-aways and hotels will need to return to applying the standard rates, currently at 20%.
VAT for Business Accounting and Customer Receipts
Accounting is rarely a business owner’s favourite task and extra complications are the last thing you need. Having the correct VAT rates for reporting is great for Accounting but also for your customers, who may require their receipts for claiming back VAT.
So don’t delay, log into TouchOffice.net and let’s fix this today!
Step 4. Make sure you click the text box to the right that indicates your VAT amount is inclusive and not an add on.
If you're still not sure how to change your VAT rates, or you don't already have the 'Tax' option described in Step 1, contact our friendly support team on support@eposready.co.uk and we will be happy to help.
Step 5. Now is a great time to check that all of your products have the correct VAT rate applied to them by looking at your 'PLU List By Tax' Report. You will find this in your 'Reports' section simply type in 'PLU List By Tax' in the search box (and hit submit!).