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    VAT may be cut to 17.5% in 2017

    mirror.co.uk/new…466
    .
    Most retailed goods are not British made, so wouldn't create manufacturing job but serve to keep retail rental up.
    Would prices go down though such as Poundland or pricing at £x.99p , 2.5% extra profit?!
    .
    Will prices go down, for long enough? Or will it be just 2.5% added to bottom line for businesses. Say they make 2.5p in the £ profit, this extra 2.5p in the pound double their profit, so good for business. (not saying myself profit is good or bad as profit is fundamental in business).
    .
    FT reports in August 2016:-
    “A temporary return of the normal VAT rate to 17.5 per cent could absorb all the shock [from sterling] in year one”, says Gilles Moec at BAML.

    He calculates it would come at a fiscal cost of around 0.7 per cent of GDP, leading to a temporary spike in the public deficit and a permanent impact on total government debt.

    29 Comments

    not cut, restored to 17.5% as it should have been years ago.

    I blame Brexit.
    Edited by: "SJHan" 20th Nov 2016

    Original Poster

    jamierichardson129

    not cut, restored to 17.5% as it should have been years ago.


    Restore as a word is cut, such as restore hedge to its previous height.

    stuarthanley

    I blame Brexit.



    I blame those rich white men like Trump and Farage.

    Original Poster

    Predikuesi

    I blame those rich white men like Trump and Farage.


    I blame on war between haves and have-nots, against the existing institutions.

    Ha ha ha ha ha. There wont be any price cuts just like before. VAT goes down.......prices remain the same. VAT goes up and so do the prices.

    I like the 20% rate, makes it easier when I do my vat quarter!

    I blame neo-liberalism and aliens

    illuminati reducing the prices in shops, how evil will they get?

    The cost of goods is going to increase so this may help to absorb it. What it means is less tax revenue which will likely mean public service cuts unless people spend more. Tough balancing act.

    splender

    I blame on war between haves and have-nots, against the existing … I blame on war between haves and have-nots, against the existing institutions.



    It's not the haves and have-nots. Globalisation doesn't care about status, it cares about ability.

    It's a war between the exceptional and the ordinary.

    Original Poster

    HotEnglishAndWelshDeals

    It's not the haves and have-nots. Globalisation doesn't care about … It's not the haves and have-nots. Globalisation doesn't care about status, it cares about ability.It's a war between the exceptional and the ordinary.


    Well, it statistics, if you plotted all abilities, ranked all population, then there are always exceptional ones and the ordinary. In any normal distribution curve it is true always 50% are above and 50% are below, nevermind globalisation or not. So 50% always haves and 50% have-nots depending on what side that you fall from the median.

    HotEnglishAndWelshDeals

    It's not the haves and have-nots. Globalisation doesn't care about … It's not the haves and have-nots. Globalisation doesn't care about status, it cares about ability.It's a war between the exceptional and the ordinary.


    Exceptionally what? Greedy?

    splender

    Restore as a word is cut, such as restore hedge to its previous height.



    No it's not. Restore is put back the way it was previously. For example, a hedge might have been cut down in the past and is now being allowed to grow to restore it to its previous {higher} height.

    About time! I was saying recently how the 20% rate was only supposed to be temporary, perhaps as long as the 15% rate was, but the public mostly forgot about it, which I'm sure has been great for the government

    ceres

    No it's not. Restore is put back the way it was previously. For … No it's not. Restore is put back the way it was previously. For example, a hedge might have been cut down in the past and is now being allowed to grow to restore it to its previous {higher} height.



    Oh for god's sake. I'm pretty sure it works both ways.​

    chrissatchell

    About time! I was saying recently how the 20% rate was only supposed to … About time! I was saying recently how the 20% rate was only supposed to be temporary, perhaps as long as the 15% rate was, but the public mostly forgot about it, which I'm sure has been great for the government


    great for the government? They dont keep VAT to themselves oO

    Keep it as it is I say. Reduce it and services suffer or the loss will have to come from elsewhere.

    Its still one of the lowest rates in the EU

    vatlive.com/vat…es/

    buddhabelly

    Exceptionally what? Greedy?



    Gifted. Talented. Driven. Hard-working.

    Globalisation is about competitiveness, be it on ability or wage. We've gone from having a small, local labour pool about 60 years ago to a larger and larger economy that doesn't care about borders or nationalities.

    It's why we have a divide between the large, wealthy cities and the less affluent areas in this country,

    chocci

    great for the government? They dont keep VAT to themselves oOKeep it as … great for the government? They dont keep VAT to themselves oOKeep it as it is I say. Reduce it and services suffer or the loss will have to come from elsewhere.Its still one of the lowest rates in the EUhttp://www.vatlive.com/vat-rates/european-vat-rates/



    If you think all the tax revenue gets distributed directly back into services then you're being very naive.

    HotEnglishAndWelshDeals

    Gifted. Talented. Driven. Hard-working.Globalisation is about … Gifted. Talented. Driven. Hard-working.Globalisation is about competitiveness, be it on ability or wage. We've gone from having a small, local labour pool about 60 years ago to a larger and larger economy that doesn't care about borders or nationalities.It's why we have a divide between the large, wealthy cities and the less affluent areas in this country,


    Nah, its just greedy for a bunch of directors to give themselves a hefty pay rise while laying off staff, just before Christmas - and then take on agency workers on minimum wage.

    Personally I think it should go up a little to support investment.

    chrissatchell

    If you think all the tax revenue gets distributed directly back into … If you think all the tax revenue gets distributed directly back into services then you're being very naive.


    of course I dont think that. Anyone who suggests that is really naive

    Chiptivo

    Personally I think it should go up a little to support investment.



    Hard to argue against a tax on consumption to support greater investment but this wouldn't be about that.

    It would be a way to hide the increase in the price of goods as a result of the devaluing of the pound. People might actually fall for it.
    Edited by: "HotEnglishAndWelshDeals" 20th Nov 2016

    Rearranging the chairs on the titanic again; it's what politicians are best at.

    craigstephens

    Oh for god's sake. I'm pretty sure it works both ways.​



    Restore is to put back the way it was. Restore is not a synonym for cut.


    Original Poster

    VAT was originally set at 10% in 1973.

    peteivy

    Ha ha ha ha ha. There wont be any price cuts just like before. VAT goes … Ha ha ha ha ha. There wont be any price cuts just like before. VAT goes down.......prices remain the same. VAT goes up and so do the prices.



    In the real world that is exactly what WILL happen.

    splender

    VAT was originally set at 10% in 1973.



    Ahhhhhhhhhhh that was before the EU dipped their oar in.

    chrissatchell

    About time! I was saying recently how the 20% rate was only supposed to … About time! I was saying recently how the 20% rate was only supposed to be temporary, perhaps as long as the 15% rate was, but the public mostly forgot about it, which I'm sure has been great for the government


    To be fair
    telegraph.co.uk/new…tml
    VAT on the other hand is incredibly unfair
    hitting the poorest in society disproportionately hard
    could only support a cut
    bought my machine machine during the 15% vat 'holiday' brand new under £120 including delivery and removal of the old one.Still going strong


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