The standard rate of VAT has risen from 17.5% to 20% in the UK as the government looks to cut the deficit from the recession.
Business groups have warned that retailers will be hit hardest by the rise, while opponents of the rise have said the poorest will be the hardest hit.
The coalition government says the increase is essential to assist in bringing down the UK’s high budget deficit.
Chancellor George Osborne said the shift was more “progressive” than a hike in income tax or National Insurance.
Items which have no VAT are …

The government is looking to slash the tax relief on pension savings of more than 100,000 people. At the moment when you have £255,000 you will still receive tax relief. The new move will cut this down to £50,000. This will save the government approximately 4 billion a year. The change will take effect from April 2011. It is thought that the move will only affect those who are the most well-off in the country. Around 80 percent of the people affected all earn more than £100,000 each year.
Another change …