VAT Rise Causing Hike in Inflation?

inflation in the shadowsAccording to the BBC (Inflation expected to exceed 3%), the return to 17.5% VAT has had an effect on inflation. Inflation has apparently risen over recent months and analysts think that it might well increase further to 3.5%. It’s not all bad news though as the experts predict a drop back to more appropriate levels by the end of the year. Slowly the United Kingdom is coming out of its economic recession and things are starting to look up.

In the mean time to help business people get ahead, here at The Company Warehouse, we are offering inflation beating prices. Our company formation packages start from FREE, so you can take advantage of a professional service to get your new company started and off the ground, but keep costs to a minimum. We’ve noticed a rise in people forming new companies of late and we’re happy to help new start-up’s to get ahead.

If your company needs to register for VAT, we can provide you with a professional service to help you get registered. Take a look at the articles on our blog and VAT Registration FAQ for more information.

Why not register today and see what The Company Warehouse can do for you?

2 comments on “VAT Rise Causing Hike in Inflation?

  • mohammed aman says:

    please tell me the advantage of vat in controlling inflation and encouraging investment

  • Hello Mohammed,
    I have spoken to our accounts team on your behalf and they gave me the following answer with regards to your question. I hope you find it helpful:

    “As it stands now the most effective way of controlling inflation is to increase productivity, thus the fixing of vat at a lower rate would allow us to buy and invest in goods as this would make them more affordable. Once the equilibrium is found, confidence is restored and then spending starts again. The control of vat helped restore the equilibrium, and now by making adjustments this will control the spending. It is not the VAT hike that will cause inflation but the population spending again. The hike in the vat rate back to 17.5% is designed to slow the spending down, thus to try and stop inflation.”

    For more guidance, why not give our team a call on 0800 0828 727.

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