Are you ready for the VAT increase?
From 4 January 2011 the VAT rate will rise to 20%. That means for all items subject to VAT, instead of paying £17.50 on £100.00 of goods or services, you will pay £20.00 on £100.00 of goods or services.
Is there anything I can do to beat this increase?? If you are planning to buy goods in the next month or so, and you are able to do so, you could bring forward those purchases to before the VAT increase. This could mean a decent saving if you are planning to replace the family car, for example. For services, you could check with your provider.
If you are a VAT registered trader and are thinking of advancing your invoices to before the VAT increase then be sure to check HMRC's website for detailed guidance and take proper VAT advice.
If you think you need our assistance, please get in touch and remember an initial consultation is FREE! Plus our fees are VAT Free - see our homepage for more details.
The above is for general guidance only. Buick & Co Chartered Tax Advisers take no responsibility whatsoever for this blog, its reliability or any actions you take having read it. If any tax planning is to be undertaken specific advice should be sought beforehand from a professional tax advisor.