Budget update: Increase in VAT standard rate
From 4 January 2011 the standard rate of VAT will increase from 17.5% to 20%. The reduced rate of VAT stays at 5%.
If you want to find the amount of standard rate VAT in a VAT inclusive price from 4 January 2011, simply divide the total cost including VAT by 6.
Due to the increase in the standard rate to 20% from 4 January 2011 the Flat Rate Scheme rates will change from the same date.