As is the case when handling nation-wide income during a recession, VAT, taxation and interest rates enter a ‘limbo-like’ pattern of dips and rises in an attempt to balance the books. The UK has seen a fair degree of change over the past couple of years, with VAT falling from the long-standing 17.5% down to 15%, and back up to 17.5% again shortly after. This was intended to boost public spending in an attempt to climb out of the economic slump; a tactic positioned to deal with the problem of recession head on. Interest rates fell to a Bank of England base rate set at 0.5%, which limited the potential gain on saving money, further promoting widespread spending (as well as working towards the protection of a weak banking system).

However, VAT is set to rise yet again from 17.5% to 20% very soon. This has illustrated a shift in the general focus and approach of Government in clawing back funds to rebuild the economy and work towards repaying the UK’s large debts. Increasing VAT will give a guaranteed boost to Governmental cashflow. The major problem here is that it could promote a dip in overall spending (particularly in the luxury item markets) and relies on the British public to make up for the UK’s economic shortfall.

Netwise Hosting will of course have to follow suit and increase VAT on all products and services purchase on or after the 1st of January 2011. Leading on from this, we are currently planning to offer our customers (both new and existing) an exciting new promotion allowing full advantage to be taken of the 17.5% rate still active up until 2011.

We are offering all our clients the opportunity to pay for their services and other related fees in advance and so enjoy savings into the new year. The more you pay in advance, the more you are set to save in the future. To add further value to this offer, we will also give you one month of service absolutely free when taking up this unique opportunity. This applies to renewals, existing contracts and new customers.

We hope this goes some way towards saving you money during this hard time, and adds a greater degree of value to your service. If you would like a complete breakdown of how much this offer can save you, do not hesitate to contact us today. Take advantage of this promotion as quickly as possible to enjoy the largest savings.

All existing customers will be contacted directly with additional information soon.