One week on

Now the new 15% standard rate of VAT has been in place for a week, what does a business need to do?:

1. Have all transactional accounting systems been updated, such as invoicing, order processing, tills, staff expenses and accounts payable systems?
2. Have all reporting and planning systems been updated?
3. Have VAT-inclusive prices been adjusted, or otherwise dealt with, wherever they appear?
4. Have existing orders, recurrent sales invoices and recurrent costs been adjusted?
5. Have orders and services paid for but not supplied in full by 30 November been identified and addressed?
6. Have items supplied before 1 December but not invoiced been identified and addressed? Likewise cash receipts not receipted?
7. As a supplier: Have any invoices (as distinct from till receipts) been produced at 17.5% when they should be at 15%? A credit note for the difference should be produced and sent to the customer. Otherwise the full 17.5% will need to be paid over to HMRC.
8. As a customer: Have you spotted supplier invoices with 17.5% VAT that should have been with 15%? HMRC suggests requesting a credit note in each case and only claiming the 15%. If the error isn't spotted, then HMRC will usually accept a claim for the VAT amount on the invoice.
9. But till receipts issued on or after 1 December should only have VAT claimed at 3/23 (15/115) of the total amount paid for standard-rated items, regardless of what is detailed on the receipt.

Further details below.