Small haulage firms will actually see their costs increase as a result of recent changes to VAT and other charges, according to one expert.
It might interest business insurance customers to know that John Whiting, chairman of the management of taxes committee at the Chartered Institute of Taxation, has explained that the cut in VAT will be counteracted by an increase in petrol and diesel duty.
He said: "For the haulage industry that recovers all its VAT on fuel suddenly there is less VAT to recover but the additional duty is still there; so their costs are going up."
Although the average man in the street is not likely to see any impact from the changes, this is not true for business, he added.
Last week, the Forum of Private Business warned that the changes in VAT could actually cost small retailers money due to the administrative work needed to amend their prices.
