Firms urged to avoid “panic buying” ahead of VAT hike
Wednesday December 9, 2009
Companies have been advised to avoid "panic buying" in the lead up to the UK VAT rate increase at the end of the year.
IT firm Computacenter said rushing to make large transactions in order to benefit from a cheaper VAT rate could cause firms to make mistakes which could cost them more money in the long run.
Terry Walby, director of solutions and technology at Computacenter, urged businesses to exercise caution in all their short-term financial dealings.
He explained: "In the rush to take advantage of the lower tax rate, it is vital that businesses maintain their rigorous procurement procedures and not drop due diligence for the sake of a last-minute financial saving, which could prove costly later down the line."
Firms planning to make imminent purchases were also advised to talk to their trusted suppliers immediately on how to take advantage of the current VAT rate with investments that are right for them.
A recent study commissioned by fuelGenie found that UK firms lose out on a collective £1.18 billion by not reclaiming VAT on fuel.
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