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VAT Change - 1st January 2010 HEADING_TITLE
What's Happening?

On 1st January 2010 the VAT rate in the UK went back to 17.5% from the (temporary) 15% rate introduced 1st December 2008. This means that more (roughly £1.85 for every £100 you spend) goes to the government's coffers.

Why?

The VAT rate was reduced to 15% in 2008 to stimulate the economy. Whether this worked or not is open to debate.

What happened to prices on 1st January 2010?

We have kept our prices as they were and have absorbed the additional VAT due EXCEPT where our suppliers have issued new price lists with significant price changes and we have receive restocks of products at these new prices.

The good news is that HORNBY, SCALEXTRIC, CORGI and AIRFIX have issued their new price lists, and there are no siginificant price changes.

We have received a fresh TAMIYA price list for 1st Janaury 2010. Almost without exception, all RC models have increased in price by between 5% and 15%. Except where we run out and have to re-order at the new prices, where the price will go up immediately on restock, we will hold the 2009 prices until the start of March 2010, after this all prices will be revised to take into account VAT and cost increases.

Other ranges we do not yet have info on, although it would be a brave manufacturer who increased prices since the Pound is worth vastly more against the Dollar than it was when the last round of price increases were put through.

UPDATED: 1st February 2010.
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