Hi I am a small business owner using the flat VAT scheme - how does this VAT reduction affect me? Can I now reduce my flat VAT rate of money by 2 1/2 % I send to revenue every 3 months?

Thanks

It's best to clarify things with the Inland Revenue but there's no change until after 1 December when you should start to use 15% on items where you use 17½% now.

Thanks. As I will be invoicing only 15% on the new invoices after that date it would make sense but I guess I will have to ring them up and confirm as I really don't want them to suddenly tell me a few months down the line that I owe them a lot of extra money I haven't expected to owe!

hfyst37: I will have to ring them up and confirm

Most definitely the best option.

They wont take too much notice if you say "I got told to do things differently on an internet forum".

BAD NEWS I'm afraid! I rang them today. They will only lower my flat VAT rate by 1% not the full 2 1/2 % So I actually LOSE 1 1/2 % on my turnover every month. Thanks a lot Gordon Brown! That's really going to help my small business...:>(