Beat the UK VAT rise with Murcia holiday rentals.
January 4th saw VAT rise 2.5%, from 17.5% to 20%, which could see households having to pay on average an extra £500 per year.
The majority of households have already had to tighten their belts amid the recession, so the extra costs are likely to mean some individuals are now unable to afford bigger purchases and may find themselves looking elsewhere to save costs, such as their annual summer family holidays.
There is light on the horizon however, as UK VAT rates are not currently applicable to flights, accommodation or car rental outside of the UK. The British public are being reminded by ABTA (The British Travel Association) that UK VAT does not apply to the cost of an overseas package holiday. This is because tour operators’ profit margins are subject to VAT, so customers should not see an increase in costs. Industry experts such as Bob Atkinson, Travel Expert at Travelsupermarket.com has said the increase in living costs at home will lead to consumers making different choices: “People will either go for cheap flight destinations on self-catering accommodation or all inclusive holidays.”
European destinations such as Spain offer a wide selection of budget flights and cheap villas to rent in up and coming regions like Murcia, meaning villa owners could see a boost in their bookings as more holidaymakers make the effort to reduce costs. Self catering options can work out a great deal cheaper for families, as buying food from local supermarkets for a BBQ or beach picnic will cost you far less than dining out. So don’t ‘Staycation’ this year, beat the VAT increase and search for holiday rentals in Murcia, Spain.
Date posted: 16 February 2011
