Sidmouth traders braced for VAT hike

SIDMOUTH’S traders are being urged to prepare for a VAT hike in January.

SIDMOUTH traders are being urged to prepare for a VAT hike in January.

Retailers must charge the new 20 per cent rate on all standard-rated takings received on or after January 4, 2011.

But, if a customer pays on or after that date for something they take away or have delivered before January 4, the sale takes place before the rate change and the 17.5 per cent rate should be used.

Retailers who use electronic tills will have to re-programme them, so that the correct VAT rate is shown on till receipts.

HM Revenue & Customs (HMRC) Director of CT and VAT Jim Harra said: “With the Christmas and New Year holidays almost upon us, businesses must be ready to implement the increase to the standard rate of VAT. They should not wait to implement the changes”