OMG, SSE 's profit for last year, a meagre £1.5 BILLION!!

DorsetDude said:
In SSE's case, £1.5 billion is their profit. If they still had to pay VAT on it it wouldnt be all profit so I am going to assume they already paid it, which means the 1.5 is after VAT. i.e. its 4/5ths of what they had before VAT. So 1/4th of 1.5 Bill is £375 million. So thats what HMRC got off SSE last year in VAT. Add in the other Big '5' and its looking close to £2 bn.
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Apart from what your actually thinking of would be corporation tax paid on the profits of the company not VAT, and if I'm not mistaken VAT on utilities is 5% not 20% but this wouldn't be paid on the profit...but actually their annual VAT bill is likely a lot larger than 375m as it would be based around turnover/income rather that profit...I'm sure the qualified accountants on the board would be better positioned to explain this than me
 
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DorsetDude said:
In SSE's case, £1.5 billion is their profit. If they still had to pay VAT on it it wouldnt be all profit so I am going to assume they already paid it, which means the 1.5 is after VAT. i.e. its 4/5ths of what they had before VAT. So 1/4th of 1.5 Bill is £375 million. So thats what HMRC got off SSE last year in VAT. Add in the other Big '5' and its looking close to £2 bn.
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Vat is only 5%
 
You pay vat on all your vatable income and claim back the vat on your vatable spending, so (very roughly) it does work out as paid on your profits at the end of the day as originally stated. Not sure if they can claim it back at the 20% charged to them but paid in at the 5% they charge mind you. :thinking:
 
DorsetDude said:
I change every year or two. Im still being ripped off as they are all near as dammit the same bloody prices.
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If you prices dropped by 4% would you still feel like you were being ripped off?
 
DorsetDude said:
In SSE's case, £1.5 billion is their profit. If they still had to pay VAT on it it wouldnt be all profit so I am going to assume they already paid it, which means the 1.5 is after VAT. i.e. its 4/5ths of what they had before VAT. So 1/4th of 1.5 Bill is £375 million. So thats what HMRC got off SSE last year in VAT. Add in the other Big '5' and its looking close to £2 bn.
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That is such rubbish

Firstly, VAT is charged on turnover, not on profits. Secondly there are different VAT rates applied to energy. Basically it's 5% on domestic energy supplies and 20% on business energy supplies. You'd need to know SSE's residential supply turnover and business supply turnover to calculate how much VAT they charged.
 
May not be much but the government could easily cut 5% off the bill by scrapping vat!
 
DorsetDude said:
Yes. 30% or 40%, no probably not. Although that doesnt mean I wouldnt take the 4%, every little helps these days.
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But you see for drops like that you either need to keep dreaming that the wholesale costs of gas/oil etc are going to fall, or do something proactive about cutting your own bills
 
Ah would that it were only actually the actual price of wholesale gas/oil that were a factor. And not speculation on prices.
 
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