The VAT rise & your wedding

There is no escaping it - the rate of VAT is set to go back up to 17.5% on the 1st of January 2010 and if you have had quotations from VAT registered suppliers in the last 12 months then they will have been at the rate of 15% VAT and suppliers may not have informed you of the rise come the New Year.

To top it off, there is quite a bit of confusion regarding when they are to apply the 17.5% rate rather than keeping the 15% rate applied.

The answer is this:

If you have booked and paid a deposit during the last 12 months you will have paid VAT at 15%. However, any balance paid after 1st January 2010 will cost you an additional 2.5%.

Here is what we would advice you to do:

1. Check all of your quotations and look at those suppliers who are VAT registered. If their quotation does not breakdown the VAT separately then look at the letter head for any sign of a VAT registration number. If you are still in doubt, ring them.
2. Then work out how much extra 2.5% is going to put on your bill.
3. If you are in a position to pay your balance prior to the 31st of December 2009 without putting yourselves under extra financial pressure, then it may be worth doing so.
4. However, if your wedding is still some way off, you may want to pay by credit card in the first instance and then use your cash to pay your card. This way you should be insured should your supplier go into liquidation before the big day. Alternatively, take out some wedding insurance - Mrs2Be recommends E&L Insurance.
5. If there are bills you are unable to pay prior to the 1st of January, work out how much extra you will have to pay and adjust your Mrs2Be wedding budget planner accordingly.

Hopefully by doing this, you will avoid any nasty surprises!

I Do(omed)

If ever there was a story to highlight the importance of taking out Wedding Insurance, then this is it!

Kenneth & Karen Porter spent more than a year planning their big day which eventually went out without a hitch but not before:

• The groom's trousers were made in the wrong size
• The wedding dress shop supplying the bridesmaid dresses went into liquidation
• The airline and travel agent they used to book their honeymoon closed down
• The wedding reception venue went into administration 10 days before the big day
  

And to top it all off the couple had splashed out on a pair of tickets to see Michael Jackson in concert.

Phew - I think even the most laid back of Brides to be would have reaching for the bach flower remedy on this occasion.

Thankfully - they did manage to find alternatives and even had some good luck along the way when the bridal shop where Karen bought her wedding dress was broken into but her dress remained untouched.

So please, if there is one thing that goes at the top of your wedding budget list - let it be Wedding Insurance - it doesn't cost much but can save you a whole lot of cash and headache should the need arise which hopefully it wont!

Mrs2Be recommends E&L Wedding Insurance who are offering a 25% discount if you buy online!