OPSIS News & Info

You may have heard that the Chancellor, Alistair Darling has announced the Governments pre-budget report for 2008.

Over the past year, major shocks have hit the economies of every country in the world. While commodity prices have recently eased, the credit shock has intensified into the worst global financial crisis for generations, a crisis that is being addressed by a global policy response of unprecedented scale and scope.

These developments mean economic prospects are subject to exceptional uncertainty, but it is clear that the UK, like many advanced economies, has moved into recession. Asset markets and the financial sector have been severely affected, with  persistent implications for the public finances. The economic and fiscal climate is exceptionally challenging, but because of the macroeconomic framework introduced in 1997 the UK is facing these shocks from a solid foundation.

The Government remains committed to the macroeconomic framework and the objectives enshrined within it. Credible medium-term objectives and mechanisms for short-term flexibility mean that the Bank of England and the Government can deliver the necessary support to the economy without compromising their respective commitments to low inflation and sound public finances. The Government’s immediate priority is to continue to support the economy through these difficult times.

This Pre-Budget Report announces that the Government will support families and businesses, including by cutting Value Added Tax (VAT) from 17.5% to 15% for 13 months, from 1 December 2008.

Due to the change in VAT announced, you will need to adjust the standard VAT rate in Millennium Accounts.

Before you make any such change in Millennium Accounts, ensure that all of your postings in the current period which have the standard VAT rate of 17.5% applied to them are posted.

A PDF document detailing the change to VAT Codes has been created for your convenience.

Click here for UK VAT Rate Change document ( 56kb PDF format)

Please contact our Support team if you require any further assistance with this.

To review the pre-budget report in full, please go to this weblink:
http://news.bbc.co.uk/1/shared/bsp/hi/pdfs/24_11_08_pbr_completereport.pdf