Groups

The 2.5% drop in VAT equates to a £2.13 reduction per £100 spend NOT £2.50

The 2.5% drop in VAT equates to a £2.13 reduction per £100 spend NOT £2.50.

I thought I would clear up this common misunderstanding:

Example for an item that was £100 including VAT at 17.5% before December 1:

£85.11 + 17.5% VAT = £100.00
(17.5% of 85.11 is 14.89 so 85.11 + 14.89 = 100.00)

£85.11 + 15.0% VAT = £97.87

VAT REDUCTION SAVING = £100.00 - £97.87 = £2.13

Pass it on retailers!!!

who cares....do all the sums you want....make it sound good....make it sound bad....the government are again ripping us off....if it takes M&S and BHS etc to offer 20% off to get sales....who does the government think its targetting

yes of course it's 2.5% of the 17.5% I think most peeps know this!!

snowtiger;3635707

yes of course it's 2.5% of the 17.5% I think most peeps know this!!

I assume you mean off, not of?

Actually either way sounds like you're saying 2.5% off 17.5%. Technically I guess that's not exactly right, 2.5 off 17.5 is probably the right way to say it.

Original Poster

torby;3635665

who cares....do all the sums you want....make it sound good....make it … who cares....do all the sums you want....make it sound good....make it sound bad....the government are again ripping us off....if it takes M&S and BHS etc to offer 20% off to get sales....who does the government think its targetting

I agree it's a government scam that's exactly why I raised the point!! People should not be fooled into thinking they are saving more than what is already a tiny amount. That is also assuming retailers are passing it on, whch they don't appear to be doing!!

snowtiger;3635707

yes of course it's 2.5% of the 17.5% I think most peeps know this!!

I don't think so snowtiger!!:roll:

Good post OP - handy for people to know.:thumbsup:

chesso;3635778

I don't think so snowtiger!!:roll: Good post OP - handy for people to … I don't think so snowtiger!!:roll: Good post OP - handy for people to know.:thumbsup:

I know what he/she means, just not written in the right way.

Original Poster

snowtiger;3635707

yes of course it's 2.5% of the 17.5% I think most peeps know this!!

Actually it is 2.5% off the amount before VAT has been added.

some 'major' retailers don't (didn't) know how much the reduction actually is...

Aldi lost out by £1.38 on their PC deal last week (so that'd be about £14 they lost when taking account of all the machines they had in stock for the deal :whistling:)

they reduced the price of the £499 PC by 2.5% to £487
It should of course have been £499 - 17.5% then add 15% = £488.38

(I'm buying some maltesers with my £1.38 yum!!)

Benjimoron;3635731

I assume you mean off, not of?Actually either way sounds like you're … I assume you mean off, not of?Actually either way sounds like you're saying 2.5% off 17.5%. Technically I guess that's not exactly right, 2.5 off 17.5 is probably the right way to say it.

chesso;3635778

I don't think so snowtiger!!:roll: Good post OP - handy for people to … I don't think so snowtiger!!:roll: Good post OP - handy for people to know.:thumbsup:

Benjimoron;3635793

I know what he/she means, just not written in the right way.

kestel;3635866

Actually it is 2.5% off the amount before VAT has been added.

Thanks peeps ..... I couldn't of put it better myself ! :lol: