HMRC publish VAT Notes quarterly and have now published the first edition of 2011. These VAT notes contain a summary of all recent changes to VAT rules and also announce future changes.

Highlights of this edition include: all VAT businesses to file online and pay electronically from April 2012; two further VAT toolkits are now available; changes to the Capital Goods Scheme; change in the tax treatment of business entertainment of overseas customers; changes to the option to tax for supplies of land and buildings; HMRC response to the ECJ decision in AXA Ltd; electronic lottery and bingo machines – change of policy and the payments on account regime.

HMRC have also published a guide detailing how to account for the standard rate of VAT change on 4 January 2011 if your VAT Return spans that date. This can be found online at http://www.hmrc.gov.uk/vat/forms-rates/rates/rate-increase.htm

A guide has also been prepared detailing how the Flat Rate Scheme percentages have changed, as a result of the increase in the standard rate of VAT to 20 per cent. This can be accessed at http://www.hmrc.gov.uk/vat/start/schemes/flat-rate.htm