VAT was first introduced in 1973 and since then there has been constant anomalies and grey areas. I am sure you already know how complex our VAT system is, but I bet you didn’t know how absurd it really is.
So is the Jaffa Cake a cake or a biscuit, you might think it is trivial, but not when VAT is involved. The answer; it’s a cake! In 1991 the Jaffa Cake went on trial to prove (with tests over its texture) that it is in fact a cake and therefore retaining its tax free status. Other anomalies range from; a paper book (which is VAT-free) to an e-book which is listed as an “electronic guide” (suffering a 20 per cent VAT charge) to the price difference between a “Subway” with hot sauce and one without.
You could say that AIMS exists because of the complex VAT and tax system – but we work differently. We like to think that we are no ordinary bean counters and work with our clients as a partner, so that they can focus on running and developing their business whilst we take care of the hurdles, pitfalls and traps of VAT and tax matters.
Let us know if you have come across any more absurd VAT or tax anomalies or have a look on our website to find out more about what we do.
If you like the way we think – you will like the way we work.
AIMS Accountants for Business are the largest independent association of professionally qualified accountants in the UK specialising in accountancy for small, local and independent businesses. AIMS are no ordinary accountants and we are more than just number crunchers! Find your local AIMS Accountant.