2nd January 2011, 01:49 PM
The point is its NOT a 2.5% increase. An additional 2.5 percentage points on top of a rate of 17.5% is actually a whopping 14.3% increase in the amount of VAT you pay. Statistics eh!
There is a reason why the government always say VAT is going up by 2.5 % points rather than the actual % rise....
There is a reason why the government always say VAT is going up by 2.5 % points rather than the actual % rise....