A number of the country's small and medium-sized enterprises (SMEs) feel that a rise in VAT could hit their profits, according to new figures.
Yesterday (June 22nd), chancellor George Osborne used his emergency Budget to confirm that the UK's VAT rate will go up to 20 per cent in January of next year.
Research published by uSwitchforBusiness.com suggests that 13 per cent of those small companies polled in a recent survey believe that higher VAT-related costs could have a negative impact on their profits.
Meanwhile, UK contractors may be interested to note that 22 per cent of respondents feel an extra cost will be placed upon their firms because of the change.
The website's small business energy expert, Jake Ridge, has pointed out the uncertainty that the VAT rise could cause.
He stated: "Small businesses are looking to the government to help safeguard their future - instead of improving their chances today's VAT hike stacks the odds higher against them."
Among the other measures outlined in Mr Osborne's Budget were plans to set up an Enterprise Capital Fund.
Posted by Jon Cummins.