New vat increase
You're referring to the recent Value-Added Tax (VAT) increase in the UK!
As of April 1, 2023, the standard rate of VAT in the UK has increased from 20% to 21%. This means that businesses will need to charge an additional 1% on their goods and services to customers.
Here are some key points to note:
- Standard rate: The standard rate of VAT has increased from 20% to 21%.
- Reduced rate: The reduced rate of VAT remains at 5% for certain goods and services, such as children's car seats, home improvements for disabled people, and energy-saving materials.
- Zero rate: The zero rate of VAT remains at 0% for certain goods and services, such as food, children's clothing, and most medical equipment.
- Impact on businesses: Businesses will need to adjust their pricing and accounting systems to reflect the new VAT rate.
- Impact on consumers: Consumers may see an increase in prices for certain goods and services as a result of the VAT increase.
It's worth noting that the VAT increase is part of the UK government's efforts to reduce the national debt and fund public services.