So it’s been confirmed – for a year from next Monday, the standard rate of VAT will be reduced to 15% instead of 17.5%.
I’m still not sure how this is meant to help the man on the street. The only benefit from this is going to be to companies at the end of the VAT chain. That is, those that are registered for VAT but sell mainly to non VAT registered companies or individuals (ie, “the man on the street”)
Argos aren’t going to re-print their catalogue. So a digital camera is still going to cost £50. The only difference is that HMRC will only get £6.38 of the money instead of £7.45, the difference is profit for Argos