VAT

[trevorlawrence]

Hi All,

Not so long ago Coverzones did some research into the sort of initiatives that people would like to see from the Government to help their business.

Unsurprisingly perhaps, the reduction in VAT was not particularly well-received – I can honestly say that as a consumer I haven’t noticed much of a difference, and from a business perspective, I don’t feel it’s been a raging success.

The people we spoke to felt that reducing national insurance and trying to help businesses deal with the level of debt they face would be much more beneficial. In any case, VAT has gone back up to 17.5% in January 2010 – which means new adjustments for businesses and many decisions to be made around whether or not to raise prices in this Year. Most consumers will probably be expecting prices to rise, so there could be an opportunity for businesses to really stand out from their competition by absorbing the rise and resisting passing it on.

What do people think? How do you plan to manage the rise? Do you think that the changes in VAT have had much of an impact upon your business – for better or for worse?

Thanks,

Trevor.