@ChrisMayLA6 I saw an interesting suggestion of zero-rating repair and maintenance, and secondhand purchase.
Combined with a legal right of repair, that could create a few jobs and make everyone’s disposable income go a bit further.

@ChrisMayLA6
My preference would be for VAT to be abolished entirely

I suspect this would be politically unworkable because so many very large businesses (lawyers, accountants, etc) run very lucrative businesses advising their clients on how to minimize their VAT exposure

@ChrisMayLA6
Can you explain why, in a world of sophisticated computing capability, tax is worked out in bands and not through a linear (or even a non-linear) calculation. TBH, it feels like it would be much simpler to understand and apply.

@ChrisMayLA6 You’d have to tie it to universal credit as a proxy to avoid redoing all the means-testing admin. And it would have to be money-off at point of sale. That could be reconciled with the business quarterly vat.

More useful to tie universal credit to a zero-rating for energy standing charges, a discounted energy tariff/kwh, and an end to payg/prepayment energy and disconnections.

@ChrisMayLA6 remindme of the exempt rather than zero rated items. I think health care is an exempt item. So no VAT charged on your private surgery bill. But NHS hospitals and GPs can't claim teimbursement though private provider comoanies can....

@ChrisMayLA6 Ah the joy of people who do maths not systems

Day 1 of new-vat. Dave the slightly unemployed poor person heads off to Waitrose with a long VAT free shopping list and 800 quid from his richer mate.

I see a slight problem. And you'd get the same effect pretty much if you just gave poor people more money and charged them vat.

@ChrisMayLA6

I had a crazy idea about VAT a few years ago that feels similar to this suggestion. In the same way that we all get tax codes you could get a personal VAT code based on income etc. So when you purchase VAT liable goods you have pay your own personal VAT % on top.
Ultimately paying a high VAT % could be a status symbol as it shows you are doing well financially.

This was just an idea sans mechanism that came into my head and I have forgotten about until now :-)

@ChrisMayLA6 I can think of several reasons why this is a non-starter: the cash flow & bureaucracy issues for small businesses; the (possible) embarrassment for the recipients; the potential for fraud; & the reluctance of HMRC to accommodate the necessary requirements in their already overcomplicated systems.

But there might be alternatives: reducing/removing VAT from all food and utilities; increasing VAT on luxury goods; imposing VAT & Hydrocarbon Duties on all commercial transport fuel...

@ChrisMayLA6 as a business having to do VAT, not sure how it would make anything simpler, especially for small retaillers and businesses. Perhaps I do not understand the proposal.

@ChrisMayLA6 the rebate also requires paying it then getting it back. Which requires cash flow that the poor often lack...