The chancellor today announced a rise in the standard rate of VAT from 17.5%
to 20% from 4 January 2011, a move that Big Four firm Ernst & Young said is
line with other European countries and OECD recommendations.
The firm said that while this is to be expected, there will be relief that
certain items will remain zero-rated. Audrey Fearing, VAT partner, comments:
“Today’s much-anticipated announcement that VAT is to increase from 17.5% to 20%
will raise approximately £13bn per year by the end of this Parliament and go
some way to reducing the UK’s deficit.
“This shift from income tax to VAT echoes the policies of many other
governments in Europe, as well as recommendations from the OECD.
“Many will be relieved that the Chancellor did not address the much-valued
list of favoured items such as food, children’s clothes and books.”
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states