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VAT cut will be beneficial

AS the credit crunch continues the Government's plans to kick start the economy by dropping Value Added Tax by 2.5 per cent could be just what home owners and the housing market needs.

On the face of it a cut of 2.5 per cent might not look very helpful but if you put it directly into monetary terms an average household has to pay approximately £2,386 in VAT each year. By cutting the tax rate that would save them about £341 a year which is not to be sniffed at.

Consumers will see a bigger difference when it comes to bigger purchases such as white goods, so if you have recently taken advantage of the lower house prices then now is a good to time to start furnishing your new abode. If you have a home, then Westhill Insurance will provide you with low-cost home insurance as well. That can be home contents insurance or buildings insurance or a mixture of both home insurance and buildings insurance.

Another area where you can make a saving is in maintenance costs and building materials. With VAT being reduced building supplies will be cheaper as will the bill you will receive from your builder. Should you be in the position of adding a £50,000 extension to your home the cut in VAT will save you £1,250. It is when you get to the bigger money transactions that you will really see a benefit.

The plan is to aid consumers and if you are purchasing the right items it will help. On day to day items it won't have a huge impact but overall you should see a saving.

Westhill Insurance is determined to help its customers through this financially tough time by offering friendly advice and lost cost insurance policies across the board. Westhill Insurance covers bike insurance, car insurance, van insurance, home insurance, business insurance, let property insurance, commercial insurance or even public liability insurance. It is willing to talk with you and come up with a tailor-made deal to suit.

For more information on Westhill Insurance or a quote, visit www.westhill-insurance.co.uk or call on 0844 371 7000 Mon – Fri 0900-1730 and Sat 0900-1300.

***Westhill Insurance is offering you a direct £30 discount on any insurance quote you complete with the firm. And if you complete a full quote by web or phone, then you will also be entered in a free competition to win a Suzuki GSX-R1000K9 Superbike worthapproximately £9000. It is one entry per insurance area - bike insurance, car insurance, van insurance, home insurance, business insurance, let property insurance, commercial insurance or even public liability insurance - terms and conditions apply.

Posted on 26th November, 2008