In England the standard rate of VAT has been reduced from 17.5% to 15%. This change took effect from 1 December 2008 and will remain until 1 January 2010.
It is important to note that there are no changes to the 5% reduced rate, 0% rate or in fact exempt supplies, but the change does affect retail schemes and flat rate scheme percentages. The VAT fraction also changed to 3/23 (from 7/47). For the full list see:
Many firms still have out of date information set out on their website and terms and conditions. The information must be updated. As simple but effective way of updating your terms is to add the following:
“…All prices are (inclusive or exclusive) of VAT which is charged at the prevailing rate in England…”