Year End Tax Review 2009/2010 Contents Lead articles The year ahead... This year, next year Pension hit Employees Too much NIC NIC and pensions Company cars Tax-free benefits Business - General Time to incorporate? His and hers Family bonus Profit and loss Show me the money Can't pay, won't pay? Turning back the clock Business - VAT Standard VAT or flat VAT? VAT goes down - must come up? European revolution A good start for VAT Happy returns? Investments Top-up savings Rainy day money Capital Gains Gains favoured Splitting gains A place in the country Holiday lets end Families Family fortunes Where there's a Will Credits and debits Piggy banks Still trustworthy? Administration Penalty shoot-out Paperwork, paperwork Pay tax later Opportunity knocks again Charity Give and save Non-Domiciled People Home and away Interest Interesting times

VAT goes down - must come up? By now, anyone running a business should already have dealt with the restoration of the standard rate of VAT to 17.5% on 1 January 2010. A Bank Holiday on the day after a party is not the best date to pick for a tax change that affects most retail sales, but we didn't get to choose it. After having to cut the rate on 1 December 2008, most people will be more familiar with the problems of a VAT change than they were before - but there are still problems and catches. If you only account for your VAT when the cash comes in, you have to worry about what appeared on the invoice - if you charged 15% in December, then 15% is what you owe HMRC, even if you receive the money in January. If you have to issue a credit note, it too should carry the same rate as the invoice. HMRC say that they appreciate the difficulties that businesses go through on a rate change, and will operate a "light touch" where people have made mistakes. Being "touched lightly" by HMRC may still be more than most people want! Action Point! Are you confident that you know the rules on changing the VAT rate?