Self storage and VAT: Keep calm and carry on at Lok’nStore

March 26, 2012

It’s not very often, that good news comes out of the Chancellor of the Exchequer’s budget. Usually, it’s all about your costs spiralling ever upwards: cigarettes up, alcohol prices up, petrol up (although the cost of petrol seems to go up constantly, regardless of anything else that’s happening around the world), road tax up, income tax up, national insurance contributions up, and value-added tax up! No matter what the state of the economy, successive governments seem to find countless ways to remove a little extra money from your wallet and purse every year, without fail, and this year’s March 2012 budget was no exception.

But…one of the key changes in the 2012 Budget that we obviously noticed at the Lok’nStore Blog; is this announcement about the self-storage industry:

Over time, significant anomalies have developed in the VAT system. These cause very similar products to be taxed very differently. Budget 2012 announces that the government will take steps to correct certain anomalies. From 1st October 2012, VAT will be extended to reduce anomalies, including the use of self-storage (to align it with other forms of storage) and alterations to listed buildings (to align with the existing VAT treatment of repairs).”

Now for those of you still awake, and left wondering whether we’ve gone mad at the Lok’nStore Blog, I’ll explain the Chancellors announcement in plain English: Basically, this means that from October 2012 ALL self-storage companies will be required to charge VAT on self-storage rental to both new and existing customers.

Oh no, what terrible news! Well actually it’s not really that terrible at all if you’re a Lok’nStore customer: Why’s that? – Because Lok’nStore already charges VAT on storage, so there will be no change for our customers.

That’s correct: because Lok’nStore has always charged VAT (enabling our business customers to claim back the VAT), we won’t be making any changes in regard to the Chancellors announcement for existing or new customers – nice that isn’t it?

Lok’nStore has always strived to provide low cost, safe, secure, friendly self-storage for personal and business customers alike, and they will continue to do so in the future. The changes to VAT just means that we can provide the same great service as we always have; at the same lowest price – guaranteed. So if you’re an existing or new Lok’nStore customer, it’s all good news really, you can just “Keep calm and carry on at Lok’nStore.”

Posted in: Self-storage , Storage Miscellany , Storage World