VAT cut

[killersla]

now the goverment have cut vat by 2 and a half percent now is this good news im not sure.

The savings in the shop are minimul i think example a dvd at £11.99 and now with the cut you save 23p i think it is.

I dont know about everyone else but this seems nothing and i certinaly wont be spending more because of the cut.

[StoneLaughter]

Re: VAT cut

Think about it - a fully VATtable £100 shopping spree will now cost £97.50. A £1200 TV will now cost £1165. (i.e. nearly £1200).

Well woop-dee f****n doo.

I don't think he could have made less difference to my month if he'd tried. I'm not failing to spend because I'm feeling cautious, I'm failing to spend because I have no money left after paying the essentials... and most of those are not VATtable anyway!

What he COULD have done is stop charging VAT on top of fuel duty... double dipping at its worst.

[WendyB]

Re: VAT cut

It's not as simple as people think to work out the VAT element. If you spent 100 including VAT before, that would have been 85.11 nett and 14.89 VAT. Assuming the nett price stays the same at 85.11, add on the 15% VAt and you get a total of 97.87. A saving of a miserly £2.13

If a TV previously cost 1200 inc VAT. it will now cost 1174.46, a saving of only 25.54.

Sorry to paint an even worse picture than Stoney already has, but that's the way it is....

[Guest]

Re: VAT cut

There is something else that is also being forgotten here and that is that many of the things we buy now, or may buy post December 1st when this comes into effect, will have been bought and paid for by the shop at the old rate of 17.5%. Will they be able to claim that back?

[WendyB]

Re: VAT cut

The shop/original purchaser of the goods will have a purchase invoice showing input tax at 17.5%. They will be able to use this purchase invoice to reclaim the VAT on the next VAT return. Obviously they will only be able to claim the input tax back if they are VAT registered.

[Paule]

Re: VAT cut

Just to point out that the vat saving on Fags, Booze and Petrol has been equalled with a duty rise to cancel it out.

So your Xmas Booze up aaint gonna be any cheaper

[scoobydoo]

Re: VAT cut

unfortunately as we are under EC rules thay could not go under 15% even if they wanted to.

I think that the only way it will help is if it helps small businesses and that stimulates employment .

[grimbell]

Re: VAT cut

And when the VAT goes back up in 13mths the tax stays on the petrol so in 13mths time there will be a rise of 2.5%!