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Accountants have warned of a crackdown on attempts to avoid the higher rate of Vat to be introduced next year.
The chancellor announced that the tax will rise from 17.5% to 20% on January 4, potentially adding hundreds of pounds to the price of cars, kitchens and home extensions. On a £30,000 kitchen extension, the bill will increase by £750.
Consumers are expected to try to beat the rise by bringing forward spending on big-ticket items. There was a 200% jump in activity on car sales websites, such as Autoquake, before Vat rose from 15% to 17.5% this year. The British Retail Consortium expects a similar surge of activity on the high street.
However, bringing forward payments to avoid the 20% rate could fall foul