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16 May 2011
A CHESHIRE-BASED business that supplies CDs and DVDs to customers of major retailers via Guernsey, avoiding VAT, is pressing on with plans to list – despite the UK government's plans to close the loophole.
The Hut Group, founded in 2004 by Matthew Moulding, is to continue with its flotation plans, reports The Guardian. The business posts VAT-free goods from Guernsey to online customers of retailers including Tesco and Asda.
The move is still planned despite the government announcing it would lower the exemption rate at which goods could be brought into the UK free of VAT.
Advisors have told Accountancy Age that the government's plans to restrict the rate to £15 announced in the Budget must go further.
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Briefings
By looking at the reasons supplier statements became unfashionable, and the reasons why it is different today, this paper delves into the many benefits that can be obtained by automating the process.
Having a real and true view of your organisation’s current financial position, and having the right systems and processes in place, will ensure that you can make strong choices and are ready to capitalise on opportunities
AccountancyAgeInsight is a frequently updated resource centre for finance professionals, offering a free and easy-to-use digital library of briefings, white papers and other information resources. 
Visitor comments Add your comment
VAT
If the company is registrered in the UK and holds stock in the UK also how do they get away with VAT free?
Posted by: Steve, 19 May 2011 | 13:19
why float wont be effected
All companies avoid tax if possible, if the government does not like it then they will change the law, but dont moan about what currently is a perfectly legal arrangement. With the recent acquisition 60% of sales are in UK so paying full vat, float should go ahead irrespective of the vat situation
Posted by: simon wilson, 08 Jun 2011 | 13:57