Business News
A report by the marketing services group, Acxiom has found that the average UK household will be feeling the pinch with the 2.5% VAT increase, to the tune of an estimated £225; a whopping £6.2 billion worse off, particularly hitting married couples living with grown up children, young childless couples that eat out regularly and married pensioners.
“The VAT rise of 2.5% may seem insignificant, but is actually going to have a major effect on many UK households' finances,” commented Stephen Whyte, chief executive of Acxiom Europe.
“The effect of the increase will not only be nationally, but also at an individual household level.”
January 4th 2011 was the due date for the standard rate of VAT rise from 17.5% to 20%. Businesses will be required to charge the 20% rate for standard rated goods available on, and after this time, at a calculation of 1/6, replacing the 7/47 of old.
Businesses will also have to factor in the new Anti-forestalling legislation that has been introduced to prevent the 17.5% rate applying to supplies of goods or services that are provided on or after 4 January 2011.
