Senior Tax Partner
Posted: 29th May 2012
That's the question posed by George Bull, Senior Tax partner at Baker Tilly, this week following the government’s U-turn on its controversial pasty tax.
We welcome common sense prevailing on the headline-grabbing pasty and caravan taxes.
These taxes would have created an even greater burden for British businesses as well as for the overstretched local consumer.
At a time when the economy needs as much support as it can get, I’m delighted to see that common sense has prevailed.
However, this could mean that the UK faces a further VAT increase later this year. With income tax and National Insurance, VAT is one of the 'Big Three' revenue-raisers for the UK Exchequer.
With no upper limit on the standard rate of VAT, the autumn Budget may announce an increase to the current rate of 20%, as recommended by the IMF.