The majority (71%) of VAT-registered businesses believe that business taxes, including VAT returns, are complex and confusing, while only half (51%) of businesses are confident in their ability to explain some elements about their VAT obligations, finds research by VAT consultancy Avalara.

It is also hugely complicated with different rates for foods, apparently with little justification.

VAT is one of the top sources of government revenue, raising over £143bn in 2021/22. Introduced on 1 April 1973, the tax was set at 10% in its first year and brought in £1.5bn, equivalent to £16.7bn in today’s prices.

The tax that originated on April Fools’ day in 1973 marks 50 years since it was dubbed ‘a simple tax’ by then Chancellor Anthony Barber.

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