Income Tax Help

Are you prepared for the VAT rise?

Whether you run a business or are simply a consumer, you are likely to be affected by the impending increase in VAT in Jan 2011.

For this reason it is vital that you have access to a tax calculator so you know what to expect.

As of the beginning of 2011, the levy will rise from its current level of 17.5 per cent to 20 per cent.

The move was announced by the coalition government in the summer and was confirmed in its October 2010 spending review.

Described as a political and economic gamble, the measure is intended to help reduce the size of the fiscal deficit that grew considerably as a result of the credit crunch.

Some estimates suggest that the average family will have to stump up an additional £500 a year as a result of the tax changes.

Meanwhile, if you run a company, you may see a fall in demand because consumers might decide they cannot afford to hand over the extra cash.

Of course, you may decide to introduce special deals for customers that involve you covering the additional cost of the levy.

Indeed, a number of large companies around the UK have made a pledge to do precisely this.

It is vital that you have some sort of plan concerning how to deal with the increase in the tax. If you do not, you may suddenly find yourself struggling.
 
To get more information on this topic or to claim tax back, browse our website.

If you discover you are eligible for a tax rebate, make sure you pursue the case, as the money you receive may well come in handy.