The standard of VAT is currently 17.5% but will be increased to 20% on the 4th January 2011.

For any sales of standard-rated goods or services that you make on or after the 4th January 2011 you must charge VAT at 20%. If you have a cash business and calculate VAT using the VAT fraction you must use the VAT fraction of 1/6th of your standard-rated VAT inclusive sales from 4th January 2011.

Ther are no changes to Zero-rated or reduced-rated for VAT. Similarly there are no changes to the VAT exemptions.

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For more information on the current state of VAT and your responsibilities visit the HMRC website