Explained in plain English

How much does VAT cut save me?

The government's VAT cut reduces the typical annual bill by a small amount. For a £1,723 bill, a 5% VAT rate means you're paying around £82 in VAT. Without the cut, this would be £103, so you're saving roughly £21 a year, or £1.75 a month, on the VAT portion of your bill.