Online Bathroom Retailer joins others to absorb the VAT increase.

Dec. 13, 2010 - PRLog -- VAT bomb ticks silently – retailers prepare…

Manchester, 13th of December 2010, Online Bathroom retailer Kings Bathrooms Ltd has taken the decision to absorb the January VAT increase by reducing its profit margins. The government announced the VAT increases in the June 2010 Budget, which will see the amount of value added tax increase from the current 17.5% to 20% on the 4th of January 2011. The move by Kings Bathrooms is in line with 36%(1) of UK retailers amidst fears that price increase may damage cash flow.

“It is encouraging to offer a positive pricing strategy for 2011 that takes into account the VAT increase. We are lucky as an online retailer the cost of changing the VAT amount is minimal, but to those who have to change marketing collateral and printed price lists it can mean extra unwanted expense.” explained Kings Bathrooms ecommerce manager David Kitchenham.

(1)Institute of Chartered Accountants in England and Wales has reported that a survey revealed that 36% of retailers are taking the decision to absorb the VAT increase rather than potentially suffer from interrupted revenue streams. Whilst online (and traditional) retailers hope for a busy Christmas season with increased revenue, the VAT bomb quietly ticks in the background.

# # #

###
Notes to the editor
Kings Bathrooms Ltd is a bathroom retailer specialising in quality low cost shower enclosures, bathroom mirrors and bathroom cabinets. All stock us drawn from UK reserves and imported from dedicated Chinese Manufacturers. Kings Bathrooms has a Manchester based showroom but primary access is via the internet at http://www.kingsbathroom.co.uk

For more information about this topic, or to schedule an interview with David Kitchenham call 0161 743 3325 email david.@kingsbathroom.co.uk
50 Liverpool Street, Manchester, M5 4LT, Registered in England No: 6432154