Eurgh - none of us like to think about the cost of getting married but I feel it is my duty as your friendly online wedding planner, to remind you of the impending changes to the VAT rate and what that may mean to your wedding budget.First the boring facts:
The standard of vat will rise from 17.5% to 20% on the 4th of January 2011. Any goods or services purchased on or after 4th January 2011 that are subject to VAT, will be charged for at 20% vat.
What does this mean to you?
It means that any of your suppliers who are VAT registered will have to increase the VAT on their goods or services if you have not paid them before 4th of January 2011. A vast number of wedding industry businesses are small - as is the nature of the industry, but you need to go through your list of suppliers and check their quotes, or give them a ring to find out if they are VAT registered.
Once you have done this, go back to your wedding budget calculator or spreadsheet and work out how much more it will cost you if you have to pay the higher rate of VAT to any of your suppliers.
Remember not all goods are subject to VAT so don't guess - ask the question of your suppliers.
Now you should have a true idea of how much more your wedding may cost you if you have to pay your bill after the rate change.
This would be my personal plan of action:
Contact your suppliers and ask them whether they will offer you a discount if you make payment prior to the 4th of January 2011.
If the answer to this is "No" then or if your wedding is still a long way off and you want added protection, providing you have credit card offering 0% on purchases, pay these suppliers by credit card.
However, if you do chose this route you must be very very strict with yourself when it comes to paying it off.
Don't forget if you have to use one credit card that doesn't apply a 0% interest rate to purchases, you and you then apply for a 0% credit card, factor in the administration fee to get a true cost.
For more information on the best credit cards available on the market visit:
www.moneysavingexpert.com
www.moneysupermarket.com
I advise this option with great caution. If you are not the best with money - then my advice would be to take the 2.5% hit as if you don't pay off your credit card, it will cost you a lot more in the long term!
And remember to take out wedding insurance - just in case any of your suppliers leave you high and dry!!!
Happy Planning ♥
