VAT rates going back up 01-01-2010…
Thursday, December 31st, 2009VAT rates will return back up to 17.5% on the 1st of January – this was announced by the British Chancellor Alistair Darling.
Just before Christmas last year we were all happy to hear the cut in VAT rates from 17.5% to 15%! In the pre-Budget statement, the chancellor said ‘he had decided against a windfall tax on banks. But if they pay substantial rewards to staff they will pay a one-off charge of 50% on any bonus above £25,000′.
This charge will come into effect straightway and will last until the 5th April 2010! This is help address the uproar within the public abo0ut large bonus payments made by banks! It doesn’t take a brain surgeon to see why people are so angry, the taxpayers have had to bail out the banks and are shocked that bonuses are still being issued.
Even though tax is increasing to 17.5%, the upfront price you see on onestopphoneshop won’t change! You will however see an increase in tax on your bill, which you receive from the network you are on.
Why did VAT get slashed?
Figures show that by the end of March 2009, the VAT cut put an extra £3.8 billion back into our pockets. You will remember the price change, for example when use to pay £9.99, you would now pay £9.78.
VAT rising already…
There have been many examples of stores who reduced their prices back around the New Year, which have been slowly creeping back up again! One lady noticed this in Matalan, she brought a bathmat back in January and was charged £5, but given 11p back. A few weeks later she went back to buy another bathmat and paid £5 without any money back.
As the advert says tax doesn’t have to be taxing! I’ll let you make your own mind up about that!









