Value added tax (or VAT) is a tax set by the UK government on the vast majority of purchases. It’s a bit like the American sales tax, apart from some subtle differences which I really don’t want to get into in case my brain implodes. VAT is currently set at 15%, but will be returning to its usual 17.5% in the new year (apparently the economy has now been saved).
There are a number of items that are exempt from VAT however, these are things that the government considers essential such as food, children’s clothing, women’s sanitary products, and other non-luxuries.
One of Britain’s best known “little known facts” is that food manufacturer McVities went to court against Her Majesty’s Customs and Excise in 1991 arguing that Jaffa Cakes were not chocolate covered biscuits (cookies) but miniature cakes; and therefore exempt from VAT. The crux of McVities’ case was that biscuits go hard when stale, whereas cakes (and Jaffa Cakes) go hard. The judge ruled in their favour and Jaffa cakes remain VAT exempt to this day.
But not all VAT arguments are so lighthearted and quirky.
Currently in the UK funerals, cremations, and burials are exempt from VAT. However the cost of headstones and other memorial items are not.
To argue that a headstone for a loved one is a luxury is preposterous. Having somewhere to go and something permanent to focus on can be an essential part of the grieving process, particularly when the headstone is in memory of a lost child.
As many of you know I am a fervent supporter of The Joseph Salmon Trust, a charity set up by my friends after the death of their three year old son from pneumonia. The Trust supports parents who have lost a child by providing financial assistance to those who need it most. This may be to help with funeral costs or to allow the self employed a break from work while they come to terms with their loss.
Grieving families have enough to deal with without worries about where they will find the money to say goodbye to their child or pay the next electricity bill. Nothing we can do can make their situation better, but we can do something to stop it getting worse.
A good deal of the charity’s work is with people who are having difficulty finding the money to pay for their child’s funeral, and in the 3 years that they have been operational they have helped pay for a number of headstones. The fact that nearly twenty percent of these contributions has gone straight into the pocket of the taxman is galling to say the least.
Neil, the co-founder of the Trust recently gave an interview to our local paper about the issue:
“It’s not like VAT on a packet of biscuits – a matter of pennies – we’re talking about significant amounts of money. We would have thousands of pounds in our bank account than we do now if we didn’t have to pay VAT and that would mean we would be able to help a lot more people. We are back to our reserve funds at the moment and are struggling a bit. We wouldn’t be struggling at all if it wasn’t for this.”
As Neil said, the number of families needing the Trust’s help has been greater than anticipated this year, and fundraising has struggled to keep up. I’m hoping that our upcoming Hadrian’s Walk will be a real shot in the arm for the charity, and there are also other irons in the fire which should also help. However times are hard and the VAT issue is not helping.
And, taking a wider view, funerals are incredibly expensive for everyone whether it be child or grandmother. To further add to the burden of the mourning loved ones left behind is just not right. Like Neil says, a tax on headstones is ” a tax on grief”.
The Joseph Salmon Trust has set up a petition on the Number 10 Downing Street website asking for the abolition of VAT on Headstones. If you a British citizen or resident you can sign it here:
http://petitions.number10.gov.uk/HEADSTONEVAT/.
There is one more thing you can do. The Trust are not able to spend money on leaflets and publicity for this campaign. Their resources are too limited and the demands on them too great to expand their remit into a lobbying force, no matter how much it’s needed. However word of mouth is a powerful thing. If you tweet, blog, post on facebook, or even (heaven forbid) tell people face to face about the petition then maybe we can garner enough signatures to at least raise the issue in the corridors of power. Any help would be hugely appreciated and, with a bit of luck may go some way towards easing the pain and financial burden
Should you wish to support our upcoming 84 mile walk across the width of England on behalf of the trust then you can make a donation on our just giving page: http://www.justgiving.com/hadrianswalkers. Every donation, no matter how small, is hugely appreciated by both myself and by those that the Trust will be able to help because of your donation.
If you would like more information about the Walk then visit our blog at hadrianswalk.org. If you want to know more about the Joseph Salmon Trust then you can visit them at their website thejosephsalmontrust.org.uk.
Thank you.
