More than 70 per cent of small businesses expect today
The transition period is going to prove expensive, I think. As well as the dilemma about how to accommodate the change (increase the price you charge customers, or decrease the margin) there's also the admin costs of changing everything over, and for big-ticket items where the increase is noticeable, there's the cost of dealing with irate customers who think they're being scammed. I'm seeing it a lot on the wedding forums I'm using. People have booked suppliers who quoted them a price with VAT at 17.5%. Now the price remains the same but the VAT has increased. There's a lot of painfully stupid people out there who don't understand the concept of a nationally-set level of taxation and they're ranting and emailing and cancelling contracts and leaving bad reviews about how their suppliers are raising the costs for no good reason and it's rampant profiteering...  How many businesses can afford a dedicated customer service department to explain the tax system to these idiots? VirtuallyMary |
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