Top 10 tips for businesses preparing for the VAT rise

Posted by John Crawford PM | on Mon, 19/07/2010 - 09:40 7159 5 comments

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

Continued...

mikewhit | Mon, 19/07/2010 - 12:10 | 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 | Mon, 19/07/2010 - 12:55 | 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%.

TC1 | Mon, 19/07/2010 - 20:47 | 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).

mikewhit | Thu, 22/07/2010 - 09:39 | Permalink

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

Rehan1 | Mon, 26/07/2010 - 11:07 | 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