VAT pre budget

A-Vic
A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
in General discussion
what will the implications of the vat cut mean for exams? will we use the 15% or 17.5 ???

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  • sebastianforbes
    sebastianforbes Registered Posts: 172 Dedicated contributor 🦉
    if my memory, and common sense, serves me correctly...

    most accounting organisations wait 6 months before they examine changes in tax rates etc.

    additionally, most exams list all of the relevant rates that you should use on the first page of the exam paper.

    they're not trying to catch you out :tongue_smilie:
  • fatandforty
    fatandforty Registered Posts: 553 Epic contributor 🐘
    A-Vic wrote: »
    what will the implications of the vat cut mean for exams? will we use the 15% or 17.5 ???

    My tutor has said to still use 17.5% as the exam papers (and answers) were written when that is what the VAT was. Not sure when it will change to 15% though as it will have to eventually. And then I believe it is going up to 18% at the end of this year and it will be all change again!!
  • A-Vic
    A-Vic Registered Posts: 6,970 Beyond epic contributor 🧙‍♂️
    fatandforty wrote: »
    My tutor has said to still use 17.5% as the exam papers (and answers) were written when that is what the VAT was. Not sure when it will change to 15% though as it will have to eventually. And then I believe it is going up to 18% at the end of this year and it will be all change again!!

    Hi we have the 15% vat for 16 months then returns to 17.5 as far as i understand it
  • CJC
    CJC Registered Posts: 1,657 Beyond epic contributor 🧙‍♂️
    I wouldn't be at all surprised if they don't skip the change to 15% altogether. While the AAT itself could probably change the rate used in the exam easily enough, it will already be outdated by the time the exams come around. Moreover, the textbook publishers would have to reprint virtually their whole AAT catalogue twice within two years incurring considerable extra costs - it's not like BTC and PTC where year-on-year change is to be expected with appropriate accounting and production practices in place for it.

    The principles of VAT won't differ so it hardly seems worth altering the syllabus for a temporary change in rate.
  • AdamR
    AdamR Registered Posts: 668 Epic contributor 🐘
    There is an article on page 8 of today's Accounting Technician and that basically states that they are leaving the rates at 17.5%.

    Well guessed, Chris!

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