VAT may be pushing up prices earlier

I recently read this article on the new pages of our main website http://www.harwoodhutton.co.uk/cgi-bin/item.cgi?id=33184&d=601&h=160&f=260 . I find it shocking if businesses are putting their prices up now ahead of the increase in VAT to 20% on 4 January. It is bad enough if you have to pay extra taxes but effectively paying extra tax before you have to is adding insult to injury! These businesses are likely to be hypocrites and will claim that they are holding their prices when the VAT rate does come into force. Dishonesty is the only word to describe any such action.

Yes, HMRC have got anti forecasting rates to prevent firms from charging 17.5% VAT on services to be delivered after 4 January. But despite these rules there is still scope for smaller businesses serving the public to do precisely this. We can help on this. It will be a welcome break for the poor consumer who ultimately breaks any VAT hike and might win the small businesses some customer loyalty. Please contact me if you would like further information on 01494 739500.