Vat Reduction to 15% With Effect From Monday 1st December 2008

The Chancellor recently announced that with effect from Monday 1st December 2008 the VAT rate will decrease to 15% for a maximum of thirteen months.

Please find enclosed the new schedules for Fees payable from the Consultant to Britnett, along with the relevant order forms. These new rates must be applied with effect from Monday.

Click Here For 'Fees From Consultant To Britnett' - Word Document, opens in new window.

Click Here For the revised Britnett Welcome Pack - ZIP file, opens in new window - contains all new Order Forms.

Any orders that you currently have, ready to send to Britnett, must have the new fees applied.

Please note there is no change to the total monthly mandate fees that we will collect for each product.

The reason: We were due to increase the mandate fees by 3% on 1st January 2009. In view of the government changes made to VAT we have decided to only apply a 2.5% increase with immediate effect from 1st December 08 making it easier for everyone to comply with the VAT regulations. This naturally means, that in relation to the mandate fees, we are requesting half a percent less than we had planned for next year, but feel that in the current climate this is the right thing to do. Nevertheless we reserve the right to review this in a years time.

To clarify: All host fees payable to Britnett by monthly mandate remain the same inclusive of VAT but the total amount of individual product fees such as administration fees, domain names etc. have changed as per the attached schedule.

Payments from the client to you as the consultant

With regard to all payments you receive direct from your clients, if you are not applying an annual inflationary increase similar to ours, then you will need to change every form from the client to you and get every client to sign a new bank mandate as soon as possible. In any event we would recommend that you advise all your clients of the implications that this VAT change makes to them.

In addition to this you will need to consider all e-commerce sites that are VAT enabled and manually change the VAT rate to 15% with effect from Monday 1st December 2008.

Should you have any queries concerning this matter then please do not hesitate to contact Head Office.

Yours sincerely
P Harper
Managing Director.