I am not an accountant but it seems to me that this VAT reduction/duty increase is a clear stealth tax on small businesses.
VAT registered businesses can claim back the VAT they pay on fuel... now that the VAT element of the fuel price is reduced they can claim back less VAT and so that will mean that VAT registered businesses will pay 2.5% more for their fuel!
This is absolutely outrageous!
Has anyone in the treasury thought this through at all? How is this going to help the recovery?
Not only that but a further burdon on businesses is that the VAT changes come into effect on 1st December - in 4 working days time! All online systems and tills need changing to apply the new VAT rate for 1st Dec. HMRC may have said they will be understanding but what about the public? If the business cannot make the necessary changes to their online and till systems before 1st December then the buyer will be overcharged!
I am sorry but in my opinion this is the worst example of economic management and government I have seen in my life time.
Paul Churchley
Fragrance Heaven
The UK's leading stockists of Luxury Scented Candles and Home Fragrances. We stock high quality scented candles, incense, and room sprays.
Web: www.fragranceheaven.co.uk
Email: paul@fragranceheaven.co.uk