Darling's VAT cut a last-minute decision
Darling's VAT cut was a last-minute decision after the government had considered raising VAT to 18.5%
Darling's VAT cut was a last-minute decision after the government had considered raising VAT to 18.5%
The government considered lifting VAT to an unprecedented 18.5%, an
inadvertent publication of an early version of the
pre-Budget
report documents has revealed.
Chancellor Alistair Darling decided only at the last minute to scrap plans
for the VAT hike in 2011-12, the Financial Times reports.
HM Treasury insisted last night the VAT rise, which would have generated £5bn
a year, was dropped by Darling in favour of a five basis point rise in national
insurance contributions and a new 45% income tax rate on high incomes.
A Treasury official said the two measures together would raise about £5bn a
year and there was no hole in the government’s forecasts for future revenue.
Further reading:
Darling’s rescue plan needs banks on board
Read
the Financial Review story
The numbers you crunch tell a story. Your expertis...
15yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleThe upcoming tax changes in 2024 will significantly impact businesses and individuals in the UK. Accountants play a crucial role in helping clients na...
View articleUHY Hacker Young and audit engagement partner Martin Jones face fines of more than £300,00 following Laura Ashley audit breaches. Read More...
View articleIt is hard to argue that the Taxes Management Act 1970 (TMA), wouldn’t benefit from some substantial updating. It came into force back in the mists of...
View articleMorton became Tax Director of the Office of Tax Simplification, an independent office of HM Treasury, in 2017 Read More...
View articleThe Low Income Tax Reform Group believes the government should have included tax initiatives in its plans for disabled people and employment Read More...
View articleThe Upper Tribunal has rejected an appeal from HMRC in a case relating to the taxation of termination payments made to football player employees of To...
View articleThe revised guidance sets out the circumstances under which trustees need to disclose the identities of beneficiaries to HMRC Read More...
View articleAlthough the concept of a £1,000 tax-free allowance sounds very simple, there are a number of complexities of which taxpayers and advisers need to be ...
View article