Press Releases

November 2010

Survey reveals cost of VAT rise

South-West chartered accountants Milsted Langdon are warning that new figures have revealed that the cost of increasing VAT to 17.5% in January was just as high for businesses as the earlier decrease to 15%.

Milsted Langdon partner Elaine Durrant said “A survey commissioned by HM Revenue and Customs (HMRC) found that more than three-quarters of businesses believed the move had an equal or greater time and cost impact – in contrast to earlier estimates that the latest change would be less onerous as firms were already used to the processes.

“And with VAT set to go up again this coming January, to 20%, firms are likely to face similar pressures again soon.”

More than half of respondents said there was nothing the government could do to help them prepare for a future rate increase, although most (80%) said it would be helpful to have at least four week’s notice.

For more information call 0117 945 2500.