UK VAT and IPT standard rate changes from 4th January 2011 – updating your software

As the standard rate of Value Added Tax (VAT) changes on 4th Jan 2011 from 17.5% to 20.0% you will need to update the rate in your Revolution software package.

To do this, simply go to ‘General Maintenance’, then ’Set up and General Information’ and then ‘VAT/Nominal’ where the rate can be updated – remember you will need to ‘accept amendments’ before returning back to your main menu. We suggest that you change the VAT rate in Revolution on the morning of 4th Jan 2011 before any new business is carried out but after your previous month-end has been run.

The standard rate of Insurance Premium Tax (IPT) also changes on 4th Jan 2011 from 5.0% to 6.0%. This will be automatically updated by our servers when you run your January 2011 month-end.

If you need help updating the VAT rate in your Revolution software please contact your Regional Manager, log a support request on our website, or call the RIVAL offices on 0800 3288833.

Please note, RIVAL Insurance Services Ltd is not able to advise you on VAT or any other taxation matters, only to inform you how to change the VAT rate charged on the software we provide. Any open rental agreement created before the VAT rate is changed on Revolution will carry the VAT rate in force when it started, even if it is invoiced after 4th Jan 2011. For information or guidance on VAT, including ‘the special rules for sales spanning the change of rate’ and how to ‘account for the right rate of VAT for continuous supplies of services’ you should contact HM Revenue & Customs or an independent tax advisor.

You can visit the HM Revenue & Customs website for information on VAT by clicking here…

You can request Revolution software support by clicking here…