After holding our prices at the same level since 2010, we now have to increase them in order to absorb VAT
Although we have managed to trade without having to register for the dreaded VAT (Value Added Tax) since the current business came into operation in 2010, our costs have increased to a point where we cannot sustain business at its current and projected level without registering for the dreaded VAT.
We haven’t, however, used this as an excuse to bump up our nett selling prices; these remain the same, and all we have done is to add the 20% VAT element to all selling prices as we are required to do under HMRC regulations. It does, unfortunately, increase costs for our customers who are not VAT registered (and who can’t reclaim the VAT element) and it will undoubtedly impact on the ability of some customers to pay the increased costs. However, they have remained at the same level for four years and would have had to increase sooner or later as business costs increase.
We hope this doesn’t inconvenience you too much, and rest assured that we’ll continue to deliver not only a great quality product but also great service as usual.
Thanks to all our customers for your support to date and we look forward to being of assistance to all customers old and new in the coming weeks and months.
Colin (Director, SimplyDV Limited)