Following the Government’s announcement of the temporary reduction in Standard Rate VAT from 17.5% to 15% earlier this week we have now received formal advice from HMCE on how to handle this.
All work carried out pre-1st December 2008 will be invoiced at the old Standard Rate of 17.5%; all work carried out after 1st December 2008 must be invoiced at the new lower rate of 15%.
In order to avoid unnecessarily complications to invoicing, and to make it clearer to all our clients, Brooks and Ware Architects will be raising invoices on all live projects at the end of November based on the current standard rate of 17.5%. Subsequent invoices will be raised with the reduced rate of 15%.
We will be seeking clarification from contractors that they are processing the change and passing on the reduction to our clients.