One in Three People Make Big Christmas Money Purchase Plans Before New 20% VAT Rate in January
Over a third of consumers are said to be planning to make big purchases with Christmas money to beat January’s VAT hike according to a recent survey.
Around 37% said they were going to bring forward larger purchases and spend before the end of December to pay VAT at 17.5% rather than the new 20% rate.
“But if you are planning on making home improvements and buying a new kitchen, leather sofa or a HDTV in the New Year then the savings could be quite large.”
“Those who may want to get car loan credit or home improvement loans would be at an advantage to buy before January and save more in the long run.”
According to price comparison website uSwitch.com, people expect to spend over £2,000 more at this time of year than they usually would to beat the tax rise.
36% of additional spending Christmas money will be on white goods, whilst just under half is expected to be spent on electronic gadgets like widescreen TV’s, LCD TV’s and 3d TV’s.
“It’s not just household goods which will incur the VAT rise, but those looking for holiday loans will have to take the extra into consideration,” commented Mr James of Bad Credit Loans 4 You /holiday-loans-fo ...
29% of extra spending will be made by families booking holidays for the New Year.
The survey also found that around one fifth of money spent will be on car purchases, according to the survey of 1,500 people.
80% of people said they believed the VAT rise would have an impact on their finances next year, which may be a worry for those with current bad credit problems.
Almost half said they would think twice before buying anything that was not essential, while 24% said they would reconsider any big purchase.
But despite these figures, many consumers are confused about what goods and services they actually have to pay VAT on and many might not require bad credit loans to help them.
Over 40% of consumers do not know whether energy bills are subject to the tax increase and 36% thought they were charged the full rate.
29% were under the impression that they may need bad credit loans to help pay for the extra price of their weekly food shop.
But in reality VAT is charged at only five per cent on energy bills, while most basic food stuffs are exempt from it completely.
90% of consumers knew they paid VAT on petrol, so they would need to factor the price rise into their next car purchase and car loan credit options.
93% knew the tax was charged on adults' clothes and the same proportion knew it was paid on white goods.
Director of consumer policy at uSwitch.com, Ann Robinson, said; “Most people know they will be hit by the VAT hikes - they just don't know how.”
“Many of the home essentials such as phone, fuel and insurance are going to be hit by the hikes.”
“Energy bills will be spared but this will be cold comfort to the millions witnessing another round of price hikes.”
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Bad Credit Loans 4 You was formed in order to ensure people with bad credit had access to specialist help in securing the bad credit loans they need.
From its UK head office in Monks Brook, Loans 4 You operates across Britain, sourcing bad credit loans for people with bad credit.
Bad Credit Loans 4 You holds a Consumer Credit Licence issued by the Office of Fair Trading.
Bad Credit Loans 4 You is also covered by the Financial Ombudsman.
Bad Credit Loans 4 You is also registered with the Information Commissioner’s Office for Data Protection.
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