Office Relocation VAT Factor
How will the VAT rise might effect businesses moving office across the country?
There is no doubt about it, an office relocation is not a cheap task and requires a strict moving office budget and a carefully scheduled moving office plan to ensure the project stays on time and within the company’s financial bounds.
So now that the Government has put the level of VAT up by 20 per cent it has been noted that smaller businesses are really feeling the impact of the price hike. The Federation of Small Businesses (FSB) has found that smaller enterprises are particularly feeling the blow with as many as 45 per cent seeing a drop in their annual turnover.
According to the Chancellor George Osborne, the rise in VAT is necessary despite the heavy price to be paid by small companies struggling to make it out of the recession. John Walker, the National Chairman of the Federation of Small Businesses says: “Small businesses have had a tough time in 2010, especially towards the end of the year, when what should have been a very busy time as people make purchases before the VAT increase, but the busy Christmas period was hampered by heavy snowfall and severe weather.”
He proposes that the Government increase the threshold at which VAT is payable by small businesses from £70,000 to £90,000. For small companies thinking about moving office, drawing up a realistic moving office budget is the best way to keep on top of your office relocation expenses and balance the impact of the VAT increase with your outgoings.
