Dec
03
2010
Umbrella company contractors 'should spend before VAT rise'
Posted by Daniel Frost
Company umbrella contractors should take advantage of buying products before the VAT increase comes into force in the new year.
Jasmine Birtles, the founder of Moneymagpie.com, noted that widescreen televisions and cars have seen a hike in sales, as people hope to save on that 2.5 per cent.
She believes this is a great idea, pointing out that, whereas the price of a cup of coffee will not go up too much in price after January 4th, those opting for a new vehicle will see a considerable difference in cost before and after the VAT increase.
The expert also said that people have intentions of saving come January, with the Christmas period set to be the time when money is most spent – more so than the same period last year.
Ms Birtles added: "Personally, I think that next Christmas will be a lower spend because next year is going to be tough with VAT rising and a lot of the cuts are going to hit."
VAT will increase from the current rate of 17.5 per cent to 20 per cent in January, with hopes that £13 billion a year could be raised, the Daily Telegraph recently reported.
Company umbrella contractors should take advantage of buying products before the VAT increase comes into force in the new year.
Jasmine Birtles, the founder of Moneymagpie.com, noted that widescreen televisions and cars have seen a hike in sales, as people hope to save on that 2.5 per cent.
She believes this is a great idea, pointing out that, whereas the price of a cup of coffee will not go up too much in price after January 4th, those opting for a new vehicle will see a considerable difference in cost before and after the VAT increase.
The expert also said that people have intentions of saving come January, with the Christmas period set to be the time when money is most spent – more so than the same period last year.
Ms Birtles added: "Personally, I think that next Christmas will be a lower spend because next year is going to be tough with VAT rising and a lot of the cuts are going to hit."
VAT will increase from the current rate of 17.5 per cent to 20 per cent in January, with hopes that £13 billion a year could be raised, the Daily Telegraph recently reported.