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Save 2.5% on many purchases if you buy before 4th January 2011
Save 2.5% on many purchases if you buy before 4th January 2011

Save 2.5% on many purchases if you buy before 4th January 2011

The standard rate of VAT is currently 17.5 per cent but increases to 20 per cent on 4 January 2011.

For any sales of standard-rated goods or services that you make on or after 4 January 2011 you will be charged VAT at the 20 per cent rate.

The change only applies to the standard VAT rate. There are no changes to sales that are zero-rated or reduced-rated for VAT. Similarly, there are no changes to the VAT exemptions.

47 Comments

Woohoo great find, that's like 2.5% off everything (bar things without VAT) plus it's in-store and online! Do I need a code or a voucher booklet?

not really a deal ...but nice to know none the less...(thought it was the 1st jan and now i know differently)

A new years joke, surely.

Banned

Things won't really go up in price though will they?
Will stuff like TVs really go from a nice round £300 to £306.52?

when did this get decided?

zckym

Things won't really go up in price though will they?Will stuff like TVs … Things won't really go up in price though will they?Will stuff like TVs really go from a nice round £300 to £306.52?



If they do go up it will more likely be £309.99

Oh great less tax for 4 more days! I wish they would stop wasting all our money on bloody road works...

Really, when you stop and think about tax on everything it is an outrage... 'you want to buy these goods so we, the government, who have already taxed you on your salary are now going to take another £20 in every £100 you spend'..'.oh, and a massive cut of all that fuel you buy to go shopping too'. This VAT thing is being used to fuel the winter sales though...I mean it is only £2.50 per £100 spend...people seem to be panic buying.

Please don't do this! The Treasury needs every penny:{

BlackCloud

Really, when you stop and think about tax on everything it is an … Really, when you stop and think about tax on everything it is an outrage... 'you want to buy these goods so we, the government, who have already taxed you on your salary are now going to take another £20 in every £100 you spend'..'.oh, and a massive cut of all that fuel you buy to go shopping too'. This VAT thing is being used to fuel the winter sales though...I mean it is only £2.50 per £100 spend...people seem to be panic buying.



Agreed!

I'm more worried about the fuel prices - 1.24 for Unleaded and 1.28 for Diesel is just crazy now. They are killing us as our biggest fuel usage is back and fore to work.

Incorrect title: it should read "Save 2.083%" (on 4 Jan, a £117.50 item today, which includes £17.50 of VAT on a £100 base cost, goes up by 2.13% to £120 - the £2.50 saving is 2.083% of £120).

Original Poster

It will be interesting to see how this affects most people. The jump between 15% and 17.5% at the beginning of 2009 didn't seem that obvious to me in the high street but on larger purchases it made a difference. And you also have to factor in the hassle factor for all retailers in repricing everything, and the administrative costs to all businesses in handling the VAT change including revising accounting software and reprinting stationary to show the new rate.

I think a big difference will be in businesses like restaurants where they will take the VAT change as an opportunity to review prices which they may have been keeping low through the tougher economic conditions.

On the positive side VAT at 20% isn't unusually high when compared to our European neighbours and at least you can work 20% out in your head easily (unlike our friends in France who have VAT of 19.6%!).

zckym

Things won't really go up in price though will they?Will stuff like TVs … Things won't really go up in price though will they?Will stuff like TVs really go from a nice round £300 to £306.52?

yes things WILL go up by 2.5% but sum shops/companies will disguise it or try 2 b savvy about da increase!

I wonder if Poundland and 99p Stores will be absorbing the increase or renaming their stores. LOL!

is this a joke??

By the way here is a great deal...child benefit will be abolished for high tax payers from April 2013 so be quick and have a baby to cash the remaining two years of benefits
Edited by: "sam1970" 31st Dec 2010

Original Poster

credington

A new years joke, surely.


ibrox_hunk

when did this get decided?


sam1970

is this a joke??



oO

why is david camron posting a dodgy deal on HUKD. We get it david we will pough money into the economy... now get off our back!!!! anyway isnt it against rules to plug your own company...or in this case keep your job

Blatant copy and paste from mse. Cold. :-)

bigsky

It will be interesting to see how this affects most people. The jump … It will be interesting to see how this affects most people. The jump between 15% and 17.5% at the beginning of 2009 didn't seem that obvious to me in the high street but on larger purchases it made a difference. And you also have to factor in the hassle factor for all retailers in repricing everything, and the administrative costs to all businesses in handling the VAT change including revising accounting software and reprinting stationary to show the new rate.I think a big difference will be in businesses like restaurants where they will take the VAT change as an opportunity to review prices which they may have been keeping low through the tougher economic conditions.On the positive side VAT at 20% isn't unusually high when compared to our European neighbours and at least you can work 20% out in your head easily (unlike our friends in France who have VAT of 19.6%!).



Im im honest i find it easier to work out 10% than 20%............ more to the pont why would you ever need to work out the VAT, surely this is already been worked out for you. 17.5% is not difficulty to work out either 10% + 10% / 2 = 5% + 5% / 2 = 2.5% add together bobs your uncle
Edited by: "Rupz" 31st Dec 2010

Original Poster

punkrjb

Blatant copy and paste from mse. Cold. :-)



It was a copy and paste from HMRC.

I think we are going to witness history here..this is distend to be the coldest post of all times

ibrox_hunk

when did this get decided?


credington

A new years joke, surely.

it was decided months ago and i assure it is no joke! sure most companies r advertising their sales as beat the VAT increase sale b4 4th january!

Banned

could be the coldest 'deal' of 2010

come on guys......................

we are taxed to death and after-literally

ibrox_hunk

when did this get decided?

credington

A new years joke, surely.



Did you not get it yet??? it is very old news..even children know about it

thetoyman

Oh great less tax for 4 more days! I wish they would stop wasting all our … Oh great less tax for 4 more days! I wish they would stop wasting all our money on bloody road works...



Or the Sick, lame and lazy.... not forgetting students either X)

thetoyman

Oh great less tax for 4 more days! I wish they would stop wasting all our … Oh great less tax for 4 more days! I wish they would stop wasting all our money on bloody road works...



Or the Sick, lame and lazy.... not forgetting students either X)

He tried it. He failed.

urbans01

I wonder if Poundland and 99p Stores will be absorbing the increase or … I wonder if Poundland and 99p Stores will be absorbing the increase or renaming their stores. LOL!



Poundworld have said that due to the vat increase, they will be charging for carrier bags!

I've just purchased a large fridge and the breakdown was

Total goods ex VAT £256.17 VAT @ 17.50% £44.83 Total VAT £301.00

so, come next week, it should still be £256.17, [email protected]% £51.23 Total (incl) VAT £307.40

As someone said earlier, it's not a straightforward 2.5% increase on the headline price.

I could have got the fride cheaper but I get it delivered free on bank holiday monday (have M&S forgotten its a bank holiday?!) and I could have got extra quidco via other suppliers but best buy didnt do the one I wanted and some of the other suppliers (pixamania) dont appear to have a great delivery company.

As, I think everyone here will abide by, shop around. When Quidco reported the 10% discount on large appliances for Comet (or was it Currys?), they were still £25 more expensive than what I could get it elsewhere

thetoyman

Oh great less tax for 4 more days! I wish they would stop wasting all our … Oh great less tax for 4 more days! I wish they would stop wasting all our money on bloody road works...



Or the Sick, lame and lazy.... not forgetting students either X)

thetoyman

Oh great less tax for 4 more days! I wish they would stop wasting all our … Oh great less tax for 4 more days! I wish they would stop wasting all our money on bloody road works...



Or the Sick, lame and lazy.... not forgetting students either X)

and foreigners

Not forgetting that most retailers have already put their prices up in 2010 so that they can say that they are not passing the VAT rise on.

Even more reason to check out HUKD for bargains for 2011!

Banned

dave smithson

we are taxed to death and after-literally


personally, I'd prefer VAT to be higher but ONLY on proper luxury goods.

noob

Bargain! Now i feel better about being ripped off by the government! Thanks!

tbh it should never have been dropped to 15% imo, but hey 2.1 % on goods is hardly going to break the bank £200 ish on a 10k spend I think I have more to worry about if im splashing out 10k

bigsky

It will be interesting to see how this affects most people. The jump … It will be interesting to see how this affects most people. The jump between 15% and 17.5% at the beginning of 2009 didn't seem that obvious to me in the high street but on larger purchases it made a difference. And you also have to factor in the hassle factor for all retailers in repricing everything, and the administrative costs to all businesses in handling the VAT change including revising accounting software and reprinting stationary to show the new rate.I think a big difference will be in businesses like restaurants where they will take the VAT change as an opportunity to review prices which they may have been keeping low through the tougher economic conditions.On the positive side VAT at 20% isn't unusually high when compared to our European neighbours and at least you can work 20% out in your head easily (unlike our friends in France who have VAT of 19.6%!).



Some thinks it is a minor difference but are we all r eady to give up 2.5% of our salaries?
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