On the 4th January 2011 the VAT rate changes from 17.5% to 20%

You will need to amend your T1 tax code to the new rate. To do this please follow this link to the Sage website. You will need to log in to the site. If you do not have a log in please follow my earlier blog which helps you create one and stores it inside your Sage software. Click here
If you have Sage Cover you will be able to download a utility which will make the changes for you.  Please make sure you back up your data before proceeding and read the notes (more info)  before installing the utility. When going through the wizard add another tax (VAT) code i.e T6 at the old rate (17.5%).
If you do not have Sage Cover it will give you information on how to change the VAT rate by going to the configuration and amending the T1 code. I would also recommend you create another tax (VAT) code i.e. T6 for the old VAT rate (17.5%). Make sure that “the include in VAT return” box is ticked. If you use memorised invoices/orders etc. you will need to amend them and resave. If you have outstanding sales/purchase orders that will be delivered after the 4th January your will need to amend these by clicking the tax code on each line item to refresh the new rate and then resave.

If you need to contact me please send me an email by going to the contact area of the website (top right hand side). I will phone you as soon as I can.