The deliberate, blatant and wholly inappropriate abuse of UK VAT law by companies loosely based in the Channel Islands is an ongoing scandal costing the UKL Exchequer hundreds of millions a year, which has often been documented here.
The budget VAT increase has just made the abuse more attractive.
And it looks like some are banking on it not ending. As the Guardian notes;
The Hut Group, the fast-growing firm behind controversial VAT-free CD and DVD internet sales for Asda, WHSmith, Dixons, Argos and Woolworths, has begun rapidly expanding into other product areas – including cheap handbags, jewellery, novelty gifts, sun cream and underwear – as it builds towards a stock market flotation early next year.
New websites gifted.com, mybag.co.uk and washbag.com have been launched in the past three months. The move is a bold departure for the Cheshire-based business, which has grown into Britain's third-largest online DVD and CD retailer in the six years since it was set up.
Note: Cheshire based. But Channel Island tax abusing. And now seeking to capitalise on it.
And this is the type of private enterprise that will get us out of recession? I don’t think so.