Feeds

Small biz calls for end date on enhanced 17.5% VAT

Good luck with that, chaps

Build a business case: developing custom apps

Small business lobbyists are calling on Chancellor George Osborne to review the 2.5 per cent hike in VAT once the UK budget deficit is back under control.

From today the top rate of VAT goes up to 20 per cent. Retail analysts have warned that the real impact of this is likely to be price rises of between five and eight per cent as shops round up prices.

The Federation of Small Businesses said that 71 per cent of members surveyed believe the rise will be bad for their business, 45 per cent predict a fall in turnover as a result.

The FSB called for the VAT rate to be reviewed when the budget deficit is substantially reduced, but George Osborne has already signalled the increase is likely to be permanent.

It has also suggested a rise in the VAT threshold above which firms must pay the tax from £70,000 per year to £90,000.

Mobile phone subscribers have most likely already received a text message from their network warning of the coming price rise.

Price hikes for big ticket electrical items like TVs and laptops will be most noticeable - although January sales discounts might hide the rises for the next few weeks.

Some retailers reported a mini-surge in business over the weekend caused by people pushing forward their spending in order to avoid the rise. ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.