TEMPORARY VAT CHanges
The chancellor recently announced a temporary cut in the VAT rate from the standard 20% to the reduced rate of 5% for certain suppliers in the hospitality and tourism sector. The change aims to boost the economy and encourage consumer spending in the sector.
As a reminder, this cut in the VAT rate from the standard rate of 20% will come into effect from 15 July 2020 to 12 January 2021.
Full information about this change is available via the following UK Government website, click here.
Accounts software and EPOS system
You need to ensure that you have updated your Accounts and EPOS systems. For most this will mean selecting the reduced rate which is set up in most accounting systems and ensuring that the VAT rates are set up correctly on your EPOS system. You should check with your system providers on how to do this if you haven’t already heard from them.
For those businesses on Xero you already have the product capabilities to apply these changes within Xero. Please click here to find out more about the VAT changes and how to apply them. Xero is a cloud-based accounting system aimed at SME businesses of all sizes and industries.
Xero is more than just accounting software and has an eco-system of over 800 add-ons aimed at all business sectors to make your business more resilient, effective and efficient. It is cloud-based so it is accessible anywhere and there is no need for expensive hardware. It has high-level security and accessible for a low monthly fee.
Hentons Digital Projects team are expert in helping businesses move to the cloud, to help them become more resilient and efficient. If you would like more information or a free demonstration, please register your interest by completing the below form.