- The UK Chancellor may consider changes to VAT rates in the 2025 budget to raise funds.
- The Chief Secretary to the Treasury has not ruled out expanding VAT scope.
- Different VAT rates complicate tax administration for businesses and HMRC.
- Reduced VAT rates and exemptions result in over £100 billion lost annually.
- These rates are inefficient for income redistribution to lower-income households.
- Possible changes include reallocating reduced-rate items to the standard 20% VAT rate.
- An increase in the standard VAT rate is not currently being considered.
Source: vatcalc.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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