With the latest government budget it looks like we’re all going to be facing VAT at 20% next year. Therefore we at 247Moneybox.com thought we might help you find a way around paying extra for food. Food alone is set to add a lot to the householder’s consumption, and that’s before even considering the impact of the tax rise on petrol, clothes and cars. However there are loopholes, and if you are crafty enough you can seriously reduce the impact of VAT.
VAT is charged differently on different goods; there are the so-called ‘essential foods’, which have zero VAT on them, and then there are the ‘luxury foods’, which, on the other hand, do have the full 20% taxed on them. Therefore our first tip would be to find out the difference and shop accordingly.
But there are inconsistencies in how different foods are categorised, so you may find it possible to keep your regular spending habits and still pay little or zero VAT. Two tips are to shop for wheat-based crisps rather than potato-based ones, and to buy freshly baked goods rather than visiting the takeaway counter, as the latter will set you back due to VAT.
So if you want to avoid or minimise VAT costs, take a little time to find out the differences between the essential and luxury foods and exploit this to your advantage.
