VAT increase

[pondpaul]

HI
Something is bothering me and I am probably an idiot but I cannot get my head around it

if Vat goes up from 17.5% to 20% it is a 2.5% increse

if I am on £17-50 and hour and it goes up by 2.5% it works out at £17.93 and I need a 14% increase to get it to £20

so has VAT really gone up by 2.5% or 14%

 

[tkhunny]

It depends on how you look at it.

20.0% - 17.5% = 2.5% -- We often speak of election differences in this way.

(20.0-17.5)/17.5 = 14.29% -- If you are calculating the effect on your paycheck, you'll have to use this one.