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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:

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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 Kevin Hall or contact us at Markel Tax on 0333 920 5708.   

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