Carousel_Arrow Chat icon_cookie IHT_trust_wills IR35 Combined Shape 2 Group 10 Login Mobile Menu Share Share Email SubMenuMobile Group 9 VAT View_Gallery View_List capital_allow Triangle 2 Copy Close construction cyberpro employment_tax_shares emplyer_solutions entrepreneurs_corps fee_protect Group 7 grant_fund Group i_Clock i_Consult i_Done i_Eligibility_Tick i_Enter i_Filter i_HMRC i_Negative i_Play i_Plus i_Reset i_Support_Legal i_Support_TaxDesk i_Support_VAT i_Tick noun_marketing_1872083 noun_online_2126759 i_download i_meet Group Copy 24 Group 18 noun_electrical_1240755 copy noun_Technology_2125422 noun_Science_2031115 i_tick_bullet_block international_tax patent_box private_client property_sdlt r_and_d reliefs_incentives Search specialist_tax status tax_indemnity valuation YouTube
Markel Tax

30 Jun 2020

Where is the VAT rate going?

The Chancellor, Rishi Sunak, is rumoured to be considering a change in VAT rate in an attempt to get people spending again and stimulate the economy.

Markel Tax conducted a poll last week, asking what business people thought the VAT rate will be in three months’ time - thanks to everyone who took part. The results of our poll are below, and make interesting reading:


A cut to 15% was the most popular option and this is line with the mood music in the press at the moment. We would agree that this is probably the most likely short-term option. It is interesting, however, that quite a few people went for an increase in the current VAT rate. Whilst we think an increase is unlikely in the short-term, this is very much the longer-term direction of travel globally where VAT (or its equivalent) is seen by governments as one of the most effective tax raising mechanisms and rates are inexorably increasing. 

Will this happen in the UK? Watch this space!

Businesses will need to prepare for a rate change and we are always happy to assist. If you would like to discuss this please contact Stuart Brodie or contact us at Markel Tax on 0333 920 5708.   

Our COVID-19 Hub contains a range of information and resources to best support our clients during this difficult time. To receive the latest news and insights by email sign-up here.

Tagged Tax
Next article in series

30 Jun 2020

Coronavirus job retention scheme: 20 questions