You may not be aware that the current reduced rate of VAT (Value Added Tax) will return to 17.5% from 15% on 1st January 2010.
This could have an impact on some of your regular bills, such as your mobile phone bill, which, if they include VAT, will have been charged at a reduced rate since last December. Whilst it’s only a small change in percentage terms, it’s worth remembering there will be this change, in case you’re wondering why your payments suddenly increase.
Although the VAT rate does return to 17.5% at midnight on 31st December, there’s some good news for the revellers out celebrating New Year on that night.
Pubs, restaurants and clubs won’t have to change their prices at midnight, so drinkers will get a few extra hours of booze at the old VAT rate. 6 hours in fact, as these establishments will be allowed to change their prices from 6am on New Years day. So raise your glasses to the Chancellor for that – “Cheers, Darling”.
photo credit: Aihara_lt
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