Comments on: VAT Changes

By: nadger

nadger — Thu, 27 Nov 2008 08:35:35 +0000

Actually VAT rates haven't changed many times over the years.

Ignoring domestic fuel it last changed in 1991 when it went from 15% to 17.5%

By: axisofevil

axisofevil — Thu, 27 Nov 2008 00:55:08 +0000

When VAT rates are changed, it is usual for the government to also introduce special transitional arrangements.

By: Gswindale

Gswindale — Wed, 26 Nov 2008 22:49:42 +0000

Not sure how this applies here, but at work today we were advised that for periods of rent crossing that changeover, we can apportion the rent for the period to 30th Nov and then from 1st Dec accordingly (even if billed in September).

By: Hippie B2B

Hippie B2B — Wed, 26 Nov 2008 15:12:43 +0000

Proof that you can please most of the people most of the time... Although it would seem that some people walk around town with magnets on their shoes in the hope of picking up pennies.

** Well done Plus Net for actually REDUCING the VAT **

FYI, to convert from the current 17.5% rate to the new 15.0% rate is :

new_price = 115 * ( price_now / 117.5 )

or a saving of £2.12 for every £100 at the 17.5% rate.

By: nadger

nadger — Wed, 26 Nov 2008 10:34:45 +0000

As I've said elsewhere the people making "official" statements have never been registered for VAT or had the pleasure of a VAT inspection. Nobody will be entitled to a refund except where there's been an error in an invoice which means customer has been overcharged. If I'm invoiced on 18th Dec 2008 I'll have paid 17.5% up to 17th Dec. When I'm invoiced on 18th Dec 2009 I'll pay 15% up to 17th Jan 2010 albeit rate has gone up on 1st Jan. I've therefore got my 13 month reduction. QED

By: Lurker

Lurker — Wed, 26 Nov 2008 08:35:01 +0000

**'It is Plusnet’s intention that all customers will benefit from the change to VAT, even where those customers have been billed or paid in advance for services to be consumed from 1st of December, and we will be adjusting customers’ bills as appropriate.’**

This reads to me as if PN are planning to refund VAT already paid by their customers.

Since VAT is charged at the prevailing rate at time of invoicing, any customer who has already paid an invoice, has already paid the correct rate, regardless of when the services are to be consumed.

HMRC will still expect PN to pass on VAT at the rate of 17.5% on all invoices raised prior to the 1st December.

So, my question is;

Where is the money coming from for all these *refunds*?

Is it just smoke and mirrors, and sooner or later PN will confess that no refund is due to anybody for these very reasons?

By: Matt Martin

Matt Martin — Wed, 26 Nov 2008 05:55:21 +0000

@A.E.Simpson

They will simply raise the ex-vat price by the 2.5% deduction they are taking away from the new VAT figure.

So, you will still pay the same as the total amount after VAT has not changed.

By: A.E.Simpson

A.E.Simpson — Tue, 25 Nov 2008 23:59:05 +0000

Good move PN nice to see some one thinking of the customer first.I heard a lady shop owner say on the news that she could not pass on the reduction ,surely as retailers collect this tax for the goverment they must reduce the prices by the amount the tax is reduced ,dont make sense to me.

By: glyndev

glyndev — Tue, 25 Nov 2008 16:40:41 +0000

In most cases a 2.5% reduction will leave payments being a fraction of a penny.

In my case : NOW 17.5% = £21.99p
NEW 15% = £21.522127p

AND : NOW 17.5% = £4.99p
NEW 15% = £4.883829p

Will these fractions be rounded up or down?

Sorry for seeming pedantic and in all cases it would only be 1p, but I like to be clear on these things.

By: reserved

reserved — Tue, 25 Nov 2008 16:09:07 +0000

Re above: I am logged in 'cos it says so!!!!!