If you walk up and down your High Street today and take a look in the shop windows, you will probably notice signs relating to the forthcoming rise in VAT. Shop keepers certainly seem to be enticing people to come and spend money now before the rate of VAT goes up in January.
If truth be told the difference in the amount we will pay will only be a relatively small amount. Even if you were to go out today and buy a new car, you will only see a difference of a few hundred pounds. This could be enough to tempt you into a purchase if you were going to buy a new one anyway, but otherwise it probably isn’t worth it.
But how has it affected you when it comes to Christmas shopping? Have you found yourself tempted to spend more now because you know everything will be a little more expensive when January comes? This is after all the time of year when we tend to be eager to spend more money than we would normally, because we get caught up in the excitement of Christmas.
Of course there are always pre-Christmas sales to pay attention to as well, so there is really a double whammy going on in many cases. Shop keepers are giving us discounts and also tempting us with the fact that the stock will be a lot cheaper now than it will be in January. But the question is whether or not you are being caught out by the temptation.
No doubt some people will see it as a reason to buy now. But with the January sales presenting us with another opportunity to spend money and buy things at cheaper prices, perhaps the VAT rise won’t hit us immediately anyway. It could take some time before we realise the effect of it, and all the scaremongering about the huge rise in prices will turn out to be nothing of the sort.
So if you are thinking of spending more and buying more now because of the forthcoming rise in VAT from 17.5% to 20%, take the time to reconsider the situation. You might find it really isn’t worth rushing into buying something now in order to get it a tiny amount cheaper than you will in January. We shall be keeping a close eye on what happens as the time for the change nears.