News

VAT Increase coming in January 2010

8 December 2009

As a specialist in Ecommerce design and development, we like to keep a close eye on the way the UK market behaves when it comes to online spend, including any related trends.  Many of our clients are expecting a surge in sales via their website in December partly because of Christmas but also because of people trying to beat the VAT increase.

VAT will increase back up to 17.5% on 1st January 2010, its only a 2.5% increase however on some more expensive items, this can be a large chunk of money.  We'd expect to see an increase in sales on larger items, in particular things like cars, TVs, laptops etc as there are some savings to be made.

We're eager to see the stats from Hitwise in about a months time when they release their report from Christmas to see if there was such an increase.

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