It is Sunday night, gone 11pm, and I have just seen an email from a client for whom I look after a wide spread of marketing matters.
The email points out to me that all the posters we sent out to print on Friday, plus the 30,000 leaflets we sent on Thursday, plus the national press advertisement artworks we have finalised this weekend, plus all of the prices as displayed on the website (contained in a database which we manage), are going to be wrong if the Chancellor of the Exchequer makes a change to the rate of VAT.
So if you or your clients sell anything which quotes prices inclusive of VAT, you have a choice: lots of work to re-price everything... or an increase in your profit as you decide to keep prices the same, effectively meaning a bit more for you, as the Chancellor takes a bit less. This, however, completely negates thepoint of the Chancellor's initiative, which is intended to reduce prices to end consumers.
Wouldn't it make more sense to increase personal tax allowances a little and leave VAT where it is? There'd be a lot less fiddling around to do.
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