Let’s start with a bit of history

February 1971 saw decimalisation of the pound – altogether a good move and one of the first steps to align us with membership of the European Club. Then on April Fools day in 1973 came the introduction of VAT – an invention of a Frenchman and yet another important step to harmonise the UK with Europe. Initially it was a very simple tax with a flat standard rate and a few important items that were zero rated. VAT was easy to collect as the burden rested with businesses.