HM Revenue & Customs - Changes to HMRC Bank Accounts - HMRC Flexible Accounting System(FAS)
During 2009 HMRC are moving from our current banking suppliers to two new commercial banks, Citi and the Royal Bank of Scotland (RBS). As a result all payments to HMRC will need to be made to new bank sort codes and account numbers.
All HMRC customers and agents who make CHAPS & Bacs payments to the HMRC FAS account.
What it is about:
HMRC are moving to 2 new banking suppliers and as a result there is a new sort code and account number for payments made to the HMRC FAS account.
When effective:
23 March 2009
Extant until / Expires:
Until further notice
HM Revenue & Customs - VAT Change in the Standard Rate
In his Pre-Budget Report on 24 November 2008 the Chancellor announced that the standard rate of VAT will be reduced to 15% on 1 December 2008.
For any sales of standard-rated goods or services that take place on or after 1 December 2008 you should charge VAT at the rate of 15%. This means that cash businesses which currently calculate their VAT using the VAT fraction of 7/47 should, from 1 December, use the new VAT fraction of 3/23.
Please note only standard-rated sales are affected. There are no changes to sales that are zero-rated or reduced-rated for VAT. Similarly, there are no changes to the VAT exemptions.
For continuous supplies of services, such as ongoing construction work, you should account for the VAT due whenever you issue a VAT invoice or receive payment, whichever is the earlier. In these cases, invoices issued or payments received on or after 1 December will be subject to 15% VAT.
If you received a payment or issued an invoice before 1 December 2008 for goods that will be provided (or services delivered) after 1 December 2008, you have a choice. You can choose to account for VAT at the new rate of 15% on the amounts already received or invoiced. You don't need to tell HMRC if you do this. In these circumstances, any payments received or invoices issued after 1 December will always be subject to the new rate of 15%. But you do need to issue a credit note to your customer if you have already issued a VAT invoice showing the old rate of VAT.
More guidance on the VAT change can be obtained from the HMRC website (www.hmrc.gov.uk) Businesses with tax advisers may wish to consult them.
Extract from letter issued on 24 November 2008 by Geoff Lloyd - Director CT & VAT
