| Tuesday, 25 August 2009 |
Tips offered for businesses at VAT returns to normalSmall businesses and freelancers have received advice on how the return to a 17.5 per cent level of VAT will affect their finances.The change, which is due to take affect from December 31st this year, has implications for administrative costs as some businesses are forced to re-price their wares. However, Barclays commercial bank relationship director Peter Glynn, writing in Business Weekly, says firms should also be aware of the marketing opportunities and "possible product re-engineering". "When considering the January Sales mark downs, realise that VAT will be increasing so plan in advance and look at what can be done within that mix as prices will be going up as VAT is paid away," he writes. Capitalising on the hype by holding sales drives encouraging people to buy before VAT goes up, as well as profiting from the fall in advertising rates are other tactics suggested by Mr Glynn. His advice comes soon after Conservative leader David Cameron hinted that his party is considering a VAT hike to 20 per cent if they win the next election. |
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