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VAT drop to 15% thoughts.

geeadamg Avatar
8y, 2w agoPosted 8 years, 2 weeks ago
Its likely to happen tomorrow (Monday). I have some stuff on back order that I haven't been charged for yet but have deposit down, do you think the retailers will come good and pass on the savings?

I hope so, since its running into the £thousands I can save quite a bit.

Plus expect lots of new deals soon (y)
geeadamg Avatar
8y, 2w agoPosted 8 years, 2 weeks ago
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#1
I have had a large solicitos bill this week which ive not paid yet, maybe i ought to ask them to REDO IT as from next week with the NEW LOWER VAT charge!! lol
#2
I think it is excellent, finally something which isn't just aimed at low income people.
#3
So we will have 1 - 2 years at 15% then the next 15 years plus at 20%+ :roll

oh and no doubt somewhere between the maker and seller someone will soak up the 2.5% we should get off things anyway :P
#4
saveuk
So we will have 1 - 2 years at 15% then the next 15 years plus at 20%+ :roll

oh and no doubt somewhere between the maker and seller someone will soak up the 2.5% we should get off things anyway :P


Yeah. They have ways of saying - its not much difference cus of the higher fuel costs in the past. Or struggling with suppliers. Or weak pound.

I'm very cynical we'll see much of it after the initial 'OMG lets do a sale'
#5
infact that might be it... less VAT on goods means we wont notice as much after the full run on pound or the current mini run starts to kick in more....:?

Untill we go on holiday that is and it costs us 9 pound for a beer in some back aliy Taverna in Greece

"μπορώ να έχω μια φτηνή μπύρα παρακαλώ"

but that said my old man works in UAE and in pound terms now gets nearly paid 30 - 40% more since mid june.... so maybe a big xmas present for me this year...
#6
pghstochaj
I think it is excellent, finally something which isn't just aimed at low income people.


It's not really aimed at low income/old people at all. They will be using their money on fuel/food so won't see any benefit at all, except maybe on bog rolls :lol: It's only those that buy loads of consumer tat like LCD TV's, games machines etc that will really see a benefit.

saveuk
So we will have 1 - 2 years at 15% then the next 15 years plus at 20%+ :roll


Exactly what I was thinking, they've got to get it all back somehow:thumbsup:
#7
Shengis
It's not really aimed at low income/old people at all. They will be using their money on fuel/food so won't see any benefit at all, except maybe on bog rolls :lol: It's only those that buy loads of consumer tat like LCD TV's, games machines etc that will really see a benefit.



Exactly what I was thinking, they've got to get it all back somehow:thumbsup:


Read my comment again, I said it's good that it's something NOT just aimed at low income people. The absolute opposite. Every other policy recently to try to solve the economic crisis has been aimed at low income people and it is getting a little boring.
#8
pcnutta;3541835
I have had a large solicitos bill this week which ive not paid yet, maybe i ought to ask them to REDO IT as from next week with the NEW LOWER VAT charge!! lol


No because they did the work at the higher rate.

Good move but it is going to double some people's workload, configuring new prices, invoices etc. Going to be a big headache for some, especially at this busy time of year
#9
pghstochaj
Read my comment again, I said it's good that it's something NOT just aimed at low income people. The absolute opposite. Every other policy recently to try to solve the economic crisis has been aimed at low income people and it is getting a little boring.


I did, I was agreeing with you that it's aimed at the well off. It will have little or no effect on those with nothing.:thumbsup:
#10
iglimpse
No because they did the work at the higher rate.

Good move but it is going to double some people's workload, configuring new prices, invoices etc. Going to be a big headache for some, especially at this busy time of year


Good point. We may start to see the american system come in with some places. Just in case of other sudden tax rises/cuts. Where everything is minus VAT and we have to add it on.

It'll have no difference to play.com etc tho. Well it might for their sources.
#11
saveuk
So we will have 1 - 2 years at 15% then the next 15 years plus at 20%+ :roll

oh and no doubt somewhere between the maker and seller someone will soak up the 2.5% we should get off things anyway :P


I have to say though that I think it's quite good if they do is. Doesn't it make sense to make us all better off now while we're in (or almost in, don't quite understand) a recession to save our homes being repossessed etc. I'd much rather pay less now while things are tight and then pay it back at a higher rate later on when everyone's a bit better off. I think it's easy to moan if you're sitting there with lots of money, no risk of being made redundant and paying your bills no problem, and no I'm not struggling - yet - I'm just thinking of those that will be.

I can't be doing with politics and all this recession mullarky but I do believe that this is a step in the right direction.
#12
Annie1508
I have to say though that I think it's quite good if they do is. Doesn't it make sense to make us all better off now while we're in (or almost in, don't quite understand) a recession to save our homes being repossessed etc. I'd much rather pay less now while things are tight and then pay it back at a higher rate later on when everyone's a bit better off. I think it's easy to moan if you're sitting there with lots of money, no risk of being made redundant and paying your bills no problem, and no I'm not struggling - yet - I'm just thinking of those that will be.

I can't be doing with politics and all this recession mullarky but I do believe that this is a step in the right direction.


So how do you think this would benefit you personally?
#13
anyone got a link to any news etc on this?, sounds bloody ridiculous way of
a. shipping more money to china taiwan etc
b sneaking in a vat rise to %20 ???
most essential items are either free of vat or taxed so heavily by other duties 2.5% vat decrease will make no diff, really can't see this being a good move for a country with so high a debt problem
#14
geeadamg;3542677
Good point. We may start to see the american system come in with some places. Just in case of other sudden tax rises/cuts. Where everything is minus VAT and we have to add it on. It'll have no difference to play.com etc tho. Well it might for their sources.


Re American system. Was recently inthe States, bloo*y nighmare, you never knew which shops / items had tax and which didn't. That would really cause chaos.

I can see a good few swindles coming up with this :whistling:
#15
Annie1508
I have to say though that I think it's quite good if they do is. Doesn't it make sense to make us all better off now while we're in (or almost in, don't quite understand) a recession to save our homes being repossessed etc. I'd much rather pay less now while things are tight and then pay it back at a higher rate later on when everyone's a bit better off. I think it's easy to moan if you're sitting there with lots of money, no risk of being made redundant and paying your bills no problem, and no I'm not struggling - yet - I'm just thinking of those that will be.

I can't be doing with politics and all this recession mullarky but I do believe that this is a step in the right direction.


:-D i hope your right and this is indeed the way it works out, but knowing goverments when it comes to "paying" this back when will it stop 20%... 22%.....25%.....30%.....after all they can say "well you where told at the time you need to pay it back"....and you can bet your bottom pound that all the other taxs will go up to boot and not just the VAT one.

Just feel that it will lead to a save £2.50 this year to pay back £25 for each of the next XxX years.

but again i hope im wrong....
#16
They should take off vat on Electric and Gas drop vat to 5% on everything else

Then all try and swim the North Sea see who gets to Germany 1st
#17
This is fantastic news this will save me £44,331 on my new Bugatti Veyron!
#18
VAt should not be 17.5% anyways.

For those of you old enough to remember VAT was increased from 15% to 17.5% on the understanding that the Poll Tax would reduce for everyone by £250 a year, a few years later the Poll Tax was abolished, guess what VAT has not reverted back to 15% since, rip off.

If the Scottish Government has their way the Poll Tax will soon be re-introduced to Scotland in the form of a Local Income Tax for everyone over 18, guess a lot od Scotts will not vote SNP again.
banned#19
Its not going to make any difference for everyday items, you will probably save a few quid buying something for a few hundred +, but even then you would hardly notice the savings!
Most shops won't even reduce the price of the stuff you are buying, certainly not the cheaper stuff
#20
colinsunderland
Its not going to make any difference for everyday items, you will probably save a few quid buying something for a few hundred +, but even then you would hardly notice the savings!
Most shops won't even reduce the price of the stuff you are buying, certainly not the cheaper stuff

It's not about single people or single items, it is about the economy as a whole, where a pound or two here and there is a billion here and there.
#21
It doesn't create 'disposable income' to spend on these vat relived items due to not applying to essential items, therefore it's total FAIL.
#22
2.5% more money in everyones pocket of jyst petrol/diesel alone will be in the figure of millions. It's only food products that are VAT Free.

Some poor bloke in Costco will have hundreds of labels to do though :giggle:
banned#23
pghstochaj
It's not about single people or single items, it is about the economy as a whole, where a pound or two here and there is a billion here and there.


The BBC website says

Widespread press reports suggest Mr Darling will temporarily cut VAT by 2.5% to 15% - the lowest level allowed under EU law - in an effort to boost consumer spending.

My point was that this won't increase spending, as prices of most things won't be affected.
It will cost retailers a fortune though :x
#24
Will Darling

A) Shave VAT
B) Shave his eyebrows.

Decision, decisions.
#25
peodude
2.5% more money in everyones pocket of jyst petrol/diesel alone will be in the figure of millions. It's only food products that are VAT Free.

Some poor bloke in Costco will have hundreds of labels to do though :giggle:


it's not 2.5% extra though is it as VAT is only 17.5% of total cost so this equates to (guess) 1% off retail, think it will make you buy that £100 item now it's £99? ,no it's just total bollix to up the VAT to 20% in future.
This will have no impact on any part of the British economy whatsoever, much better to have dropped the stamp or fuel duty.
banned#26
Its a 2.13% saving off retail

85.10 + 17.5% = £100
85.10 + 15% = £97.87

So on large purchases you may save a few quid, I fail to see how this will increase consumer spending though.
On smaller items retailers won't reduce prices, poundland for example sell everything at 85.1p + vat at the moment, 15% vat will mean 85.1p + vat = 98p, you won't see that 2p.
#27
Anyone else own a VAT registered limited company? I charge 17.5% VAT however only have to pay 12.5% to the VAT man, that other 5% was company profit in which I'd get charged corporation tax on and then could take as dividends.

Be interesting to see if I'm loosing out or whether the amount owed to the VATman is less.
#28
MinstrelMan
Anyone else own a VAT registered limited company? I charge 17.5% VAT however only have to pay 12.5% to the VAT man, that other 5% was company profit in which I'd get charged corporation tax on and then could take as dividends.

Be interesting to see if I'm loosing out or whether the amount owed to the VATman is less.


...or if you run short of cash in the next VAT period because you now have 2.5% less of it sat in your Company current account to call on when needed.

Presumably you have joined the Flat rate VAT scheme & 12.5% is the figure based on your industry type?

Yes, I would expect the published figures for every industry would have to be re-aligned accordingly, but by the time National Insurance contributions have gone up, and tax on spirits, tobacco, and fuel has increased, nobody will be able to afford anything again anyway.

If customer spending decreased by just 0.5% last month, then the Government should just have left the economy alone for another month to see if it went down further or went back to normal.

Ho ho ho hum.

BFN,

fp.
#29
Experts were divided on the likely impact of the approach.
"You only notice cuts in VAT if you actually go out and spend," said Peter Dixon, a strategist at Commerzbank. "I think at a time when people are concerned about losing their jobs, I can't quite see what's going to lure them back into the shops. It's job security that is the major problem."
But Simon Hayes, U.K. economist at Barclays Capital, said the measure may provide a positive jolt for consumption.
"Such a measure may be particularly effective since the poorest households, which tend to have the highest propensities to spend, also have a high propensity to spend on [VAT-eligible] goods," Hayes wrote.


I'm firmly with Dixon on this one, Hayes just wants you to go mental with your credit card which isn't exactly helpful is it?
#30
there is also the psychological effect in which people may see that the government is doing its best to keep the recession under control. If that boosts a little confidence into them buying something then it will help the economy.

The approval rating of brown has shot up since this down turn is evidence of that.

The fickle forces that drives the economy like my mate got a new phone/car/home improvement thus I want one and the whole thing continues until every1 is keeping up with the jones.
#31
He said VAT would be cut from 17.5% to 15% from next Monday for 13 months, to encourage spending.

To pay for that in future years Mr Darling said that from 2011 National Insurance would rise by 0.5% and there would be a new 45% tax rate for earnings above £150,000.

The pre-Budget report contained announcements of a duty rise on alcohol, tobacco and petrol duty, to cancel out the effect of the VAT reduction.
banned#32
How to lose a future election lesson 1?

Announce that NI will go up if they get elected :whistling:

How to win a future election lesson 1?

Announce that NI will not go up if they get elected ;)
#33
Just been into a well known games shop to purchase Guitar Hero Wolrd Tour on Wii and asked the assistant if we come back on Monday would it be cheaper due to lower VAT. He informed us that as from Monday its going up by 10Quid!!
So we bought it today, seems the vat reduction will cause business to increase prices?
How strange!

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