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VAT rate to rise - but not until January

robinson+co’s VAT partner, Roger Troughton, explains how to take advantage of the delay


Despite having “no plans to raise the level of VAT” at the beginning of May, George Osborne surprised no-one by announcing an increase to 20% in his budget on 22 June. The surprise came in the timing – the increase only takes effect on 4 January 2011. Good of him to let us have Christmas and New Year at the old rate!

This does give us an opportunity to make savings by purchasing big ticket items before the increase comes into effect. Whilst the savings on a new TV or washing machine are modest, on a new car or kitchen they may run into hundreds of pounds. Remember too that by paying for goods before 4 January you can take advantage of the 17.5% rate even if you can’t take delivery of them until afterwards.

For further information, please contact Roger Troughton, on 01900 603623

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robinson+co is a trading name of robinson+co (Gosforth) Limited registered in England & Wales 08088245. Registered office Oxford Chambers, New Oxford Street, Workington CA14 2LR. Regulated by the Institute of Chartered Accountants in England & Wales for a range of investment business activities.
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