9 Feb 2012

A VAT Free Valentines

Love is in the air again.  But then so is recession.  So in these hard times you’ll be especially keen to pick up a few bargains that don’t involve paying 20% of the price to the tax man.  So here are a few suggestions on how to adapt traditional valentine’s gifts so that none of your Valentine’s Day needs to involve George Osborne spending your hard earned cash.
The Card
First one is one of the toughest.  Cards, eCards you pay for, and even paper to make a card, all come with VAT.  You could try making one out of a zero-rate magazine or picture book.  Or maybe buy a zero-rated map and circle your house with a heart.  Luckily, whatever you do send, the postage will be VAT free!
Flowers
Grow your own.  This one involves planning ahead but, if you’ve got the skill to do it, seeds at 0% are a far better option than flowers at 20%.
Dinner
You may not need an extra excuse to avoid the happy couple competition at your local restaurant, but happily the 20% VAT on catering and hot take-away food gives you one.  If you can pluck up the courage to cook at home you can have oysters, asparagus, fantastic steak and organic vegetables, all at a pleasing 0% VAT.
Chocolates
Sadly chocolate love hearts, chocolate truffles, and Quality Street all come in with 20% VAT.  But pick up some brownies or a chocolate covered cake from M&S and you’re back in zero-rating...
Photo Frame
This could be the year to avoid the ubiquitous heart-shaped photo frame at 20% VAT.  Happily, following last year’s Trueprint case, photobooks are now all VAT free, and just as romantic.
Lingerie
An old ploy for the smaller female has been to buy clothes in children’s sizes which are VAT free.  Somewhat reassuringly the legislation prevents this extending to lingerie so other solutions are needed.  Sadly I don’t really have any.  Maybe if it was made of food, but not sweets or chocolates as they’re all 20% rated confectionary.
Jewellery
Necklaces, earrings, rings and bracelets are all out I’m afraid.  But if he or she has got a taste for precious metals, a block of gold or some gold coins would come VAT free.
Going Out
Happily there are masses of things you can do together without the heavy burden of VAT.  Travel by tube or bus at 0%, instead of taxi or car at 20%.  A James Bond night at the Casino, no VAT, but if you start gambling there is admittedly betting and gaming duty.  Not-for-profit museums and zoos are all VAT free.  And similarly theatre and music; so avoid the profit making X-Factor gigs and get tickets for the not-for-profit Royal Opera House.
Romancing
Finally, if the evening progresses well, some more intimate romancing may come into play.  Just remember that all contraception comes at a reduced VAT rate of 5%.  Sure it’s not the full 20%, but if, like me, you want to be true to your VAT free principles abstinence is the only way.
Best wishes for a romantic VATless evening!

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