Preparing for the VAT increase - before Christmas 2010!

1. Make sure you know what the rules are for deciding what rate of VAT is to be charged - this is the stuff about tax points. Do all of the people responsible for deciding what rate of VAT to charge know and understand what they have to do?
   
2. Don't be forced or encouraged to pay big chunks of cash out early - you would need to spending £10,000 before you would save £250. I'm not sure that even then it makes sense to part with that much cash much earlier. Also be careful not to fall foul of the avoidance rules.
3. Know what you're going to do about your prices and, are you going to put them up by just the VAT increase? You do need to invest some time in preparing for the VAT increase especially if you are dealing with the public or customers who are not themselves VAT registered. Do you need to reprint price lists etc? remember to change your Sage defaults too!
4. Make sure that your bookkeeper knows what he or she is doing after 3rd January when it comes to issuing credits.
   
5. The flat rate scheme rates are changing again and unfortunately part way through a month so - with any luck - you'll not be selling anything on 1st to 3rd January. If you must, remember to keep great records about actual sales in that period.
6. Call me if you have any problems but not on 25th December please

Happy Christmas