Congratulations to Her Majesty’s Government on giving us a major accounting headache in the run up to Christmas.
Lovely idea in principle: VAT, in my not so humble opinion, is nothing but legalised theft anyway, but that’s another story. Now we face the fun of selling everything that we bought in before Dec 1st at 17.5% VAT at the new rate of 15%; and all those things so carefully priced by the manufacturers with an ex-VAT price to give a nice, rounded inc-VAT price suddenly become silly prices:
- Bar of chocolate: was £1.30; will be £1.27
- CD: was £14.99; will be £14.67
Books, of course, are zero-rated so book prices are unaffected.