0370 270 6000

already registered?

Please sign in with your existing account details.

need to register?

Register to access exclusive content, sign up to receive our updates and personalise your experience on brownejacobson.com.

Privacy statement - Terms and conditions

the VAT rise, a rock and a hard place

7 January 2011

As we all know and have no doubt complained about at some point the rate of VAT increased on 4 January 2011 from 17.5% to 20.0%. Although it will increase their expenditure, this might not deter consumers from most small purchases. For example if an item costs £100, the raise only equates to a £2.13 increase.

But for retailers, the increase creates a particular dilemma. The Price Marking Order 2004 requires all retail businesses selling to consumers to display their prices inclusive of VAT. These businesses therefore have 2 options:

  1. continue with their current prices, and absorb the difference (for now at least), or
  2. change the price of all of their non-VAT exempt goods, and incur potentially significant costs in terms of re-pricing, amending till systems and other costs.

The answer will be different for each business and product. Retailers should consider with what changes their customers are willing and able to cope.

related opinions

Impact of Covid-19 upon level of fine

Two cases have considered the issue of Covid 19 as part of the sentencing exercise. In the most recent, failures by a principal contractor Modus Workspace, who design and refit refurbishments, led to a £1.1 million fine after an engineer was injured from a fall from a roof.

View blog

Chancellor announces levy on companies subject to anti-money laundering regulations

The Chancellor’s latest Budget Report outlined that the Government will introduce a £100 million Economic Crime Levy, otherwise known as the AML Levy no earlier than April 2022 to fund action to tackle money laundering and ensure delivery of reforms in the Government’s Economic Crime Plan.

View blog

Credit broking: know your permissions

To operate lawfully, firms that broker credit to consumers by way of business must be registered with and authorised and regulated by the Financial Conduct Authority (FCA).

View blog

More protection required for retailer workers as violence is on the rise, according to latest statistics

Following an MP debate on 5 November 2019, the government is due to release long-awaited guidance as to how it intends to protect workers in the retail industry against violence, harassment and abuse.

View blog

mailing list sign up



Select which mailings you would like to receive from us.

Sign up