cancel
Showing results for 
Search instead for 
Did you mean: 

VAT Reduction

Moderator
Moderator
Posts: 20,717
Thanks: 2,805
Fixes: 558
Registered: ‎11-01-2008

Re: VAT Reduction

Yeah I know that food doesn't carry VAT, which is kinda the point - the eggs that have doubled in price in my local supermarket won't get cheaper because of this.
This was meant to be a budget that helps people and it doesn't seem to help with the basics was my point.
Customer / Moderator
If it helped click the thumb
If it fixed it click 'This fixed my problem'
Community Veteran
Posts: 19,139
Thanks: 383
Registered: ‎12-08-2007

Re: VAT Reduction

Quote from: pierre_pierre
do it in one old price x 0.978723404255 = new price
what is happening to the fuel 5%vat?

Which is what HPsauce said earlier with less digits. Smiley
Fuel VAT remains the same but the 2p fuel tax which was delayed previously will now be added.
Community Veteran
Posts: 3,874
Thanks: 476
Fixes: 6
Registered: ‎05-04-2007

Re: VAT Reduction

Quote from: artmo
A permanent 2p duty increase in fuel tax has been introduced in the pre-budget report, which despite being presented as revenue neutral, will mean that fuel prices will rise over the next year and beyond.

I assume that applies to the booze and cigarette tax rises as well, supposedly to reflect the reduction in VAT.
So basically, a deferred years worth of petrol, booze and cigarette tax rises via the back door.
Well someone has to pay for the banks I suppose Roll eyes
Community Veteran
Posts: 4,729
Registered: ‎04-04-2007

Re: VAT Reduction

Quote from: itsme
Food does not carry VAT, unless it's takeaways and restaurants and these have to charge 17.5% which has been reduced to 15%. So may be cheaper to eat out if they pass on the reduction.

Unlikely with the cost of reprinting menus, but I bet they pass the cost on when it does back up.
techguy
Grafter
Posts: 2,540
Registered: ‎12-09-2008

Re: VAT Reduction

Quote from: Alex

I assume that applies to the booze and cigarette tax rises as well, supposedly to reflect the reduction in VAT.
So basically, a deferred years worth of petrol, booze and cigarette tax rises via the back door.
Well someone has to pay for the banks I suppose Roll eyes

I would prefer to receive my salary as a brown envelope full of notes but businesses aren't that keen so you are stuffed if you have no bank account.
It would also make paying for my internet access a little difficult.
So it looks like we are stuck with the banks.
itsme
Grafter
Posts: 5,924
Thanks: 2
Registered: ‎07-04-2007

Re: VAT Reduction

Quote from: community
For all trying to work out the VAT part of any included price (when it is 17.5%), here is a tip:
Take the full price and multiply by 7 and divide by 47 (remember Jumbo-Jet!)
This then gives you the vat .

With the VAT at 15% the new fraction is 6/46 so suggestion for ways to remember this
Community Veteran
Posts: 19,139
Thanks: 383
Registered: ‎12-08-2007

Re: VAT Reduction

This is simple mental arithmetic Smiley It's easy to take 10% then 5% and add the figures together.
pierre_pierre
Grafter
Posts: 19,757
Registered: ‎30-07-2007

Re: VAT Reduction

you ever seen a kid on a supermarket till trying to work out 10% - (my wife is the same and she isnt exactly young) tell them to shift the decimal point one place and they say "do what" Angry Sad Undecided Cry
Community Veteran
Posts: 3,291
Thanks: 2
Registered: ‎10-08-2007

Re: VAT Reduction

I recall decimalisation in the Seventies. It was the opportunity for the most comprehensive prices increase in my memory.
I suspect the reduction in VAT will be seen by many as another opportunity to do the same, i.e. leave the price tag at the same value including 15% VAT therefore increasing the nett price.
I wonder what sort of reduction will be seen in prices, if at all, considering the financial position many business are in at the moment?
Sales tax here in Pennsylvania is 6% and in nearby Delaware there is no sales tax. I think I can feel some retail therapy coming on!
@pierre_pierre
The only thing I ever see the kids on supermarket check-outs work out is whether to be just unpleasant or completely obnoxious.
Community Veteran
Posts: 3,874
Thanks: 476
Fixes: 6
Registered: ‎05-04-2007

Re: VAT Reduction

Well, anyone heard of the phrase "the calm before the storm" Sad
While I usually take anything ITV say with a pile of salt, I heard on News At Ten that the government were thinking of increasing VAT 1% to 18.5% come the end of the holiday period. Of course it was just 'an idea'.
So permanent booze, fag and petrol tax rises, and no guarantee VAT will revert back to the old rate comes the end of next year.
I think the government have been taking lessons from the credit card companies, a nice introductory VAT rate for 13 months Roll eyes
Not that it's been engineered as an election winning strategy, of course.

Community Veteran
Posts: 19,139
Thanks: 383
Registered: ‎12-08-2007

Re: VAT Reduction

You're right, this was on most of the news bulletins last night.  But why should we be surprised.  They have robbed us blind for 10 years so why should they change now.  Fortunately most of these things won't come into effect until after the next General Election so we have an opportunity to tell Brown and his bunch of robbers what they can do with their tax rises Wink Wink
pierre_pierre
Grafter
Posts: 19,757
Registered: ‎30-07-2007

Re: VAT Reduction

I dont know why every one is taking the Blues It is a world wide Problem, not a British one that seems to have started in the USA
community
Grafter
Posts: 666
Registered: ‎31-07-2007

Re: VAT Reduction

Quote from: itsme
Quote from: community
For all trying to work out the VAT part of any included price (when it is 17.5%), here is a tip:
Take the full price and multiply by 7 and divide by 47 (remember Jumbo-Jet!)
This then gives you the vat .

With the VAT at 15% the new fraction is 6/46 so suggestion for ways to remember this

How about "Gary Sobers" who had something to do with 6 FOR 6 !!! Wink
Community Veteran
Posts: 6,735
Thanks: 12
Registered: ‎02-02-2008

Re: VAT Reduction

It's sort of ironic that the media reaction to a 2.5% VAT cut is to find people who think it's so small that it's pointless, yet the mere discussion of an option of a future 1% increase is seen as an intolerable burden.  Crazy
Lurker
Grafter
Posts: 1,867
Registered: ‎23-10-2008

Re: VAT Reduction

Quote from: Jameseh
Not sure if you guys have seen, but we've posted this tonight:
http://community.plus.net/blog/2008/11/24/vat-changes/

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