VAT will return to its former level of 17.5% in the New Year. It was reduced to 15% on 1 December 2008 to stimulate consumer spending as the economy faced recession. According to a BBC-commissioned ComRes poll of 1,002 British adults back in November, almost a third (32 percent) said their spending would decrease their spending after the rate increase. A majority – naturally enough – wanted the lower rate to be extended.
The rise means, unfortunately, that some of your purchases of office supplies will cost a little bit more in the New Year. Some goods, like printed books, maps, tea and coffee, are V|AT-exempt. See the HMRC’s rates of VAT on different goods and services for full details.
You can save money by buying your office supplies before the New Year. We will of course continue to discount prices where we can to offer you the best possible stationery deals.