Responding to the news that the Government has reversed its decision on over the proposed introduction of VAT on hot food, also known as the ‘pasty tax’, Paul Belsman, RSM Tenon’s Head of Tax, said: ‘This change of heart is good news for retailers who we know have been unhappy about this decision when it was announced in the Budget in March.
‘As clearly highlighted by the discussions that followed the announcement, what was intended to be a ‘tidying up’ exercise on the part of the Government was fraught with complexities. We were particularly concerned that the confusion would have resulted in retailers getting their pricing wrong which not only would have had a significant financial impact on their business but could have led to penalties being imposed.
‘This decision will be welcome news to businesses, and I’m pleased that the Government has listened to their concerns.’
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