As readers are aware, the rate of VAT in the UK returned to 17.5% on 1 January 2010. In this regard, HMRC issued brief 68/09 in late 2009, which explains how the return to the higher rate is to be implemented.

The brief also comments on the approach that will be taken by HMRC VAT audit staff if they discover errors in relation to the rate change. Guidance has been given to the staff to operate a ‘light touch’ in terms of errors made in the first VAT return after the change where the error relates to a change issue.

Full details are available at http://www.hmrc.gov.uk/briefs/vat/brief6809.htm