By Carolyn Osman (ACCA) of Garbetts Ltd. Tel: 01983 400350

However, it is worth noting that although flat rate bands have increased it is not necessarily to the pre 1 December 2008 levels. HMRC says:

"The flat rate scheme provides an optional simplified VAT arrangement for businesses with a turnover up to £150,000. The percentages were re-calculated in December 2008 to reflect the temporary reduction in the standard rate of VAT. The flat rate percentages have now been re-calculated to reflect the reversion of the standard rate of VAT to 17.5%. The new rates will be implemented on 1 January 2010.

"They also include technical adjustments to reflect more up to date business patterns. This means that, for some sectors, the rates will not simply return to the level set prior to the December 08 changes. Virtually all sectors will face an increase (as a result of the increase in the standard rate) but some sectors' increases will be bigger than others'.

"This is consistent with the approach adopted last year when the standard rate went down. It should also be noted that from January over two thirds of users have a lower rate or the same rate as they did last December when the flat rates changed to reflect the 15% VAT rate."

Unfortunately the new rates don't seem to have been published yet – it would be wise to check the HMRC website for this information as it is released.

From 1 January the VAT on services supplied in other EU countries changes. If you provide services to businesses or individuals in other EU counties, or receive such services, it is worth getting advice on this. This does not affect non EU countries, nor goods (as distinct from services).

From 1 April 2010 most businesses will have to submit vat returns online. This will apply to new registrations from that date and existing businesses turning over more than £100,000.

If you believe you could be affected by any of these changes and would like a review of your tax affairs, please contact us at Garbetts Chartered Certified Accounts. Tel: 01983 400350