Forum - VAT reduction – worth it?
VAT reduction – worth it?
Tue, 05/01/2010 - 10:07 — Mark Williams
On 1 January 2010, the basic VAT rate went back up to 17.5 per cent, following 13 months at the lower level of 15 per cent. If your business charges VAT, have you experienced any early indications of a fall-off in business? Did the 2.5 per cent reduction genuinely help your finances, as the government hoped, or has it all been largely been a case of 'much ado about nowt'?
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The resounding lack of response to your question is probably a good indication of what business owners think about the changes - much ado about nothing and not worth the hassle caused to businesses.
Anyone that spent precious hours wading through HMRC's guidance on the rules applying around the VAT rate change (....I was pulling together salient facts for a user friendly blog) will concur that the whole thing was an utter waste of time for small businesses. I would doubt that any business owner fully understood how the change over rules applied to them. My best guess is that they will either have spent a small fortune on advisory fees (I hope not..), or more likely, crossed their fingers and hoped...
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