Value Added Tax Day
Today, the 1st October, sees a host of changes to the VAT system. From today many items that were exempt are now subject to VAT. The sports drinks industry is just one area, and will now see it liable for VAT on its products.
The mightily successful Pasty Tax campaign managed to see off the Government attempts to tax the pasty. However, some pasties and sausage rolls could go up if they are kept in artificial warming cabinets. A pasty is only exempt if it is left to cool in the natural environment.
One area that did not escape having VAT added at 20% was the rotisserie chicken and other similar products that we now see in so many shops and supermarkets. Though I am sure the major supermarket chains lawyers are busy at work looking at the detail.
The Static Caravan has also escaped being subjected to VAT. However, from March 2013, they will see 5% VAT added. I am sure that industry will have more to say in the coming months. Also in the firing line will be hair-dressers chairs and alterations to listed building which will now be liable for 20% VAT.
So lets celebrate this day by supporting your local baker by buying a VAT free pasty!