Tuesday 22nd of June 2010
Individual voluntary arrangement (IVA) answers might provide essential information to self-employed Britons who are keeping their business afloat by dipping into their personal finances.
Chancellor George Osbourne announced today (June 22nd) that VAT is set to rise from 17.5 per cent to 20 per cent in January 2011 as part of the emergency Budget.
However, Steven Law, president of R3, believes this could leave companies in trouble, as they are saddled with an "extra tax burden" and may suffer a reduction in consumer demand if they pass the levy on to customers.
Answers on IVAs might, however, offer self-employed Britons who are already struggling to get by a chance to drop their unsecured debts and replace the personal finances they have long been using up in an attempt to keep their enterprises afloat.
That’s because meeting all of the reduced-rate monthly repayments could have people out of the red after around five years, with a renewed ability to make their income go further every month.
"The increase in VAT starting in January next year will be a further blow to those struggling businesses that rely on consumer spend," says Mr Law.
By Ashley Littley
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- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- IVA questions may guide you out of the red
