Sep
23
2010
Contractors should not be affected by VAT rise
Posted by Daniel Frost
The impending VAT rise that will be coming into the UK from the new year should not have an affect on contractors who are with an umbrella company.
For example, those working for a small, VAT-registered business should particularly feel little cost to implementation, as electronic tills will not need to be re-programmed and products will not need to go through the tiring process of being re-labelled, Contractors UK has reported.
Paul Mason, manager of the contractor division, and Mark Burke, senior VAT consultant, at Abbey Tax Protection, were both giving the advice, in which they also noted that contractors working within a business-to-business environment will also be scarcely affected.
The article explains: "As most freelancers' end-clients will be VAT registered, the end-clients will be able to recover the VAT so the rate is immaterial."
VAT will be rising from 17.5 per cent to 20 per cent from January 4th across the UK, as part of chancellor George Osborne's emergency budget, the Daily Telegraph has reported.
Though a controversial decision when it was first announced, it is hoped that £13 billion a year could be raised as a result, which could then help the economy and contractors looking for more work.
The impending VAT rise that will be coming into the UK from the new year should not have an affect on contractors who are with an umbrella company.
For example, those working for a small, VAT-registered business should particularly feel little cost to implementation, as electronic tills will not need to be re-programmed and products will not need to go through the tiring process of being re-labelled, Contractors UK has reported.
Paul Mason, manager of the contractor division, and Mark Burke, senior VAT consultant, at Abbey Tax Protection, were both giving the advice, in which they also noted that contractors working within a business-to-business environment will also be scarcely affected.
The article explains: "As most freelancers' end-clients will be VAT registered, the end-clients will be able to recover the VAT so the rate is immaterial."
VAT will be rising from 17.5 per cent to 20 per cent from January 4th across the UK, as part of chancellor George Osborne's emergency budget, the Daily Telegraph has reported.
Though a controversial decision when it was first announced, it is hoped that £13 billion a year could be raised as a result, which could then help the economy and contractors looking for more work.