How Does the January VAT Increase Affect You?
From tomorrow, the 4th January 2011, the standard rate of VAT in the UK is set to rise by 2.5% from 17.5% to 20%. The rise isn’t temporary (as was the decrease to 15% in 2008), but instead a permanent change to the taxation system announced in this year’s emergency budget. This increase is one of the ways the Government intends to reduce the national debt by clawing back an…