Warning over VAT charges

Practices have been encouraged to review their housekeeping to ensure they are paying the appropriate level of tax, to take account of VAT changes and to pick up on property-related allowances.

On VAT, the Optical Confederation has reminded members that full cost apportionment agreement letters must be reviewed annually or sooner if a material change to the business is made.

It also said that the rise to the 20 per cent level of VAT last year would have decreased the exempted taxable percentage of dispensed optical appliances. The sale of contact lenses without any associated professional service also needed to be subject to the full 20 per cent rate, it added.