VAT

23/06/2010

The chancellor has announced in his emergency budget that VAT is to rise to 20% from the current rate of 17.5% from January 2011. Whilst this will not significantly effect most Care providers there will be a small additional burden in terms of costs on goods purchased.
 
For franchised businesses there will also be an additional cost in their on-going fees to the franchisor and if they are a new business on their start up costs. For example the 2.5% increase in VAT would add an additional £675 to the initial franchise fee of each new business.
 
New franchisees can avoid the higher rate of VAT by paying there franchisee fee in full before the 4th of January.

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