Will There Be Changes to VAT After the Election?

14 April 2015, 15:14

There is always a period of uncertainty when a General Election is coming up. It may be close but no one knows what the outcome will be. Some elections seem to be foregone conclusions. This, however, is not one of them.

Every political party has their promises to make and plans to set out for the future if they were to be elected. We have to consider these promises and plans before deciding who to vote for. VAT comes into play here just as much as any other area of interest. While you may think business people would be more interested in VAT than anyone else, the truth is that it affects all of us.

The general rate of VAT currently stands at 20% and it has done for quite some time. There are several other rates in play too though, making it difficult to tell exactly how much you might be paying on any one thing. The rates are easily available to check online though so you can make sure you are able to access the best information you can.

The reality though is that no one can quite be sure of how VAT might potentially be altered in some way after the election. There have been occasions in the past when something has been promised only for it not to happen at a later date. This does help to explain how important it is to recognise the uncertainty that often abounds at this stage in an election campaign. It doesn’t matter who you decide to vote for – you never know whether or not that party will get into power.

In truth then, we shall not know until sometime after the election itself whether or not the rate (or indeed rates) of VAT will experience any changes. It might seem odd but really we have no idea whether VAT will be altered and if so, by how much. Depending on the potential changes that might be made, there is a chance some of us could be affected more than others.

Of course if the general rate was reduced (unlikely, but you never know) you might end up being grateful for that decision. So until we arrive at the beginning of May, and possibly later than that, we must accept VAT will remain as it is for now. Whether we will look back on this as the time just before the rates changed, we shall know soon enough. Maybe we will benefit from changes that might be made, instead of things going against us. It’s an interesting prospect and one that many business owners will be pondering even as you read this. Where do you stand on the idea of changing the rate of VAT? Would you rather things stayed as they are at the moment or not?