Top 10 tips for businesses preparing for the VAT rise

The VAT increase will have pricing and cost control implications for many clients, so it pays to be prepared, explains John Crawford.

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Comments

Second time around

mikewhit | | Permalink

So the Tories should at least give Gordon some credit - for getting everyone ready for their VAT change.

But he brought it back to 17.5% again after a year ... (Edit: sorry, brain not in gear !)

James Hellyer's picture

N0...

James Hellyer | | Permalink

... the Labour government didn't put VAT back down again. They reduced the standard rate to 15% and the put it back to 17.5%.

VAT vs Price increase

TC1 | | Permalink

I feel a bit like a parrot saying this, but ...

an increase in VAT from 17.5% to 20% is not a 2.5% increase - in anything.

VAT increases by 14.3% (that's 2.5 in 17.5).

The (VAT-incl.) price increases by 2.1% (that's (1.2-1.175) in 1.175).

 

Point mean prizes

mikewhit | | Permalink

Tricia, think in the media they call it "2.5 percentage points" - ugly but clear !

Rehan1's picture

Pont 4 Explanation, Did not get it .

Rehan1 | | Permalink

Hi John,

Interesting Article and good contribution from you on VAT rise.

Please could you elaborate Point no 4 on Retailers , if possible with little expample.

I would appreciate your help.

Rehan