Ryan Tax Professional Assesses Impact of United Kingdom's Value-Added Tax Increase.

SAN JOSE, Calif., July 19 /PRNewswire/ -- The British Chancellor of the Exchequer George Osborne increased the value-added tax (VAT) rate in the United Kingdom (UK) from 17.5% to 20% beginning January 4, 2011, in response to years of budget shortfalls and gaps in the amount of tax revenue collected.  This is the first permanent increase to the standard rate of VAT in nearly 20 years, which is expected to generate more than 13 billion pounds ($19 billion) a year in additional revenue, according to Stephen James, Principal at Ryan, a leading international tax services firm.

"Any business operating in the UK will be managing much larger tax amounts and will have greater risk as a result of this increase," said Mr. James. "It's critical that businesses consider the impact the new tax rates will have on their processes and systems and make the necessary adjustments to ensure proper calculation and reporting of their UK tax liabilities."

As compared to Germany, the Netherlands, and other large European Union (EU) countries competing for corporate investment, the UK's 17.5% tax rate was among the lowest, which was very attractive for businesses that were considering where to locate their operations.  

"At 20%, the VAT rate will be higher than most and may negatively impact corporate investment in the UK," said Mr. James.  "In addition to the increase in tax rates, the UK's continued resistance to adopting the Euro may mean some other European countries are now in a better position to attract foreign investment."

About Ryan

Ryan is the leading tax services firm in North America, with the largest transaction tax practice in the United States and Canada. Headquartered in Dallas, Texas, the Firm provides a comprehensive range of state, local, federal, and international tax advisory and consulting services on a multi-jurisdictional basis, including audit defense, tax recovery, credits and incentives, tax process improvement and automation, tax appeals, and strategic planning. With a multi-disciplinary team of more than 850 professionals and associates, Ryan serves many of the world's most prominent Fortune 1000 companies.

SOURCE Ryan

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED