20% VAT makes exploitation of LVCR even more tempting

With the government continuing to state that “The implication that businesses are simply setting up on the Channel Islands to take advantage of this relief is not true”, the Guardian published an interesting article just recently about The Hut Group who are the fast growing firm behind the CD and DVD sales for companies such as Asda and Argos.  Rather than worrying about the loophole being closed it would appear that this group are banking on not only it staying open but the new 20% VAT level actually encouraging future business growth ahead of their stock market floatation.

In the last few months they have begun expanding in to other product areas including cheap handbags, jewellery, novelty gifts, sun cream and underwear.