Following Germany’s decision to reduce VAT from 19% to 16% in order to boost consumer spending and Rishi Sunak’s contemplation of a similar action here in the UK, what are the chances and the pundit’s opinions?
The PM announced on Friday a VAT deferral to support UK
businesses in this unprecedented time. The deferral will hopefully help
many businesses to stay afloat during this difficult period, but it is worth
reminding all businesses that this will not abolish any VAT due, it will
simply defer the date it is due for payment and exists to help those in
financial difficulty or hardship. To summarise how this deferral will
work in practice:
HMRC have recently confirmed their stance on ‘lost space’ in relation to the creation of bathrooms using an existing room in a disabled persons home – this was previously known as ‘restitution relief’.