19-Oct-2010 14:32

Ouch! Will it hurt you or your business?

We're about 10 weeks away from the VAT rise to 20% & the third change to your business accounts and systems in 3 years or so..

The new 20% rate - effective January 1st 2011 - will apparently raise £12billion for the country, (our) finances and economy, but will it cause pain for you personally and for your business?

Will your business be able to absorb (although I suppose we have little choice) the costs?

Does your service or product work on such tight margins that the VAT rise to 20% will have a great impact?

Many of us sell goods and products that quote prices inclusive of VAT. Shops and online stores offer goods inclusive of VAT & will need to physically change website prices or re-price goodies on shelves?

You may need to print new brochures, flyers, price lists…

Will you have to spend valuable hours & resources changing your accounting systems and records again, or perhaps even incur extra accountancy fees to do so?

I wonder if the government and Exchequer have really thought this through...

Oh, and just to raise your spirits a little…...

…...remember that even at the new January 1st 2011 level of VAT at 20%, the UK still boasts one of the lowest VAT rates of the 27 states in the EU, so the chances of a future hike in rates is a real possibility.

Brace yourselves folks!