A sigh of relief after the most significant budget in years. George Osborne has unveiled the emergency budget, and with it some big changes to the tax system.

The one we are going to look at first is VAT going up to 20%. Some say this was nessecary, others argue that is cancels out VAT being at 15%. Either way it is going to mean more tax. For those wanting to get ahead, the new formula for working out VAT is going to be 2 over 12.

For instance, I buy something for £120, times by 2 equals £240, divided by 12 equals VAT amount of £20.

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