> in fact if you earn 80k and spend ALL your takehome on 20% VAT goods, you still end up with the majority share. Employment salary cost: 91.04K (gross salary

> in fact if you earn 80k and spend ALL your takehome on 20% VAT goods, you still end up with the majority share. Employment salary cost: 91.04K (gross salary + employer's national insurance) Gross income: 80K Take home pay: 55.04K VAT: 11K The value you can get if you buy everyday items after your 91K salary cost is 44K or 48%, the rest, 47K goes to the treasury. My figures were wrong indeed.