VAT – vicious advice tax?

Oh dear. Did anyone just hear Stephanie Flanders, the BBC economics editor on Radio Two. She was talking about the fact many eminent economists are predicting a big VAT rise. She mulled some things VAT might be extended to. Financial services, she says. What on shares and things says Jeremy Vine? Well, there are certain bank services, says Flanders.

This hasn’t happened yet of course. These are economists saying the Government may have to do this and a journalist saying here is one way you could extend it.

But unfortunately I reckon IFAs could probably predict one place offering something akin to  ‘bank services’ though they would say what they do is much better.

Actually any advice or financial transaction hit is very small beer in comparison with putting up overall VAT. What I don’t know is how price sensitive advice is to this. There is quite a strong argument to say don’t do it especially at the moment but let’s hope such arguments are not needed.

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