Are you ready for the change in VAT?

The standard rate of VAT goes up to 20 per cent on January 4 2011 - so it's worth getting your business ready now.

From Tuesday January 4, you will need to charge the new 20 per cent VAT rate on all standard-rated sales you make from that day onwards.

If you are in retail, you must use the new 20 per cent rate for all standard-rated takings you receive on or after January 4. The new VAT fraction for the 20 per cent rate is 1/6 (used to calculate the VAT element of standard-rated gross takings).

If your business issues VAT invoices, you must use the new 20 per cent rate for all VAT invoices you issue on or after January 4, which are issued within 14 days (or a longer period that has been agreed with HM Revenue and Customs) of you providing the goods or services.