HMRC Special Rules pertaining to the forthcoming rate change

Under the normal rules, standard rated supplies with tax points created by payments received or VAT invoices issued on or after 1 January 2010 will be liable to the 17.5% rate.

However, there are optional change of rate rules that you may be interested in applying. You can apply the rules selectively to different customers. Also, you can adopt them without notifying HMRC.  The special change of rate rules are optional – you do not have to apply them and you are unlikely to want to if your customer can recover all the VAT you charge them (unless it is administratively more convenient for you). Adopting one of the optional change’s will only benefit those clients who are not VAT registered.
The change of rate rules may be used where you perform services before 1 January 2010 and raise a VAT invoice and, in some cases, receive a payment after the rate change.

To view the complete VAT Notice it can be downloaded from the "User Downloads" page or Click Here to view.