Finally I have received a cheque for the 2.5% reduction of the VAT on my New Honda Jazz, although the figure bears no resemblance to any of the figures on my order form and it seems to have been plucked from the air. However, it has not been an easy ride to reach this conclusion. Being fed up waiting for the dealer to 'look into it', I explored the HMRC site to find out exactly the situation and found that companies were advised to reduce the VAT or not - a situation I found most confusing if not crazy. Next port of call was Honda UK asking their policy on VAT. I listened to lots of waffle about the reduction having been absorbed into an increase in price - fair enough - but mine had been ordered at the price before this reduction in VAT and increase in price. When I mentioned that Honda would be obliged to pay the government only 15% VAT on my car now then it meant Honda would pocket MY 2.5% I was eventually told that she would 'look into it' and call me back. She didn't call back, but had clearly called the dealer because that day the dealer called me to say that there was a cheque in the post. I expect I was one of very few people in the country caught up in this split situation and they decided that, I was not going to 'go away'.