Vat increase!

Galaxy66

Galaxy66

Jeremy Beadle
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My name is Mal not Jeremy :)
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Yes
Heard our "decisive" government are to increase the vat back up to 17.5 % !

Something to bear in mind if you are considering buying new at the moment.
 
That should slow down the economy a little bit more :D
 
was always going to happen since was reduced to 15% for a year or so. doesnt it go back up in December?

Like a 2.5% cut in VAT sped up the economy.............. that £500 lens is now £487.50
woo-hoo!!!
 
Galaxy66 said:
Heard our "decisive" government are to increase the vat back up to 17.5 % !

Something to bear in mind if you are considering buying new at the moment.
Click to expand...

This was always going to happen sooner or later. I believe it will rise to 20% in the not too distant future...
 
it was only planned for a year as short term fix....
same with Stamp duty on houses until £175k ish being exempt....that goes back to normal jan '10

the annoying thing about the VAt was that they increased fuel tax (again, the 2nd time after promising not to) which meant that fuel stayed the same and what truckers and driving professionals could claim back actually went down...as they could claim back VAT but not fuel tax...and the VAT is taxed on the fuel costs and the fuel tax.
lovely
 
Galaxy66 said:
Heard our "decisive" government are to increase the vat back up to 17.5 % !

Something to bear in mind if you are considering buying new at the moment.
Click to expand...

Thanks for the information, it's given me the perfect excuse to buy a new mountain bike that I've been wanting for a while :)

Julie
 
This was always the plan, a 2.5% cut in the short term followed by a 2.5% then another 2.5% increase in the long term.

once it hits 20% it'll never go back to 17.5% , stitched up yet agan :(
 
IMO, this government is commiting financial and political suicide!
 
Can you guys who say that VAT is set to rise to 20% care to offer some source of where this is stated?
 
I love the fact that when the cut came in everyone complained and said it wasn't enough and wouldn't affect anything...

Now it goes back up and apparently it's going to ruin (or add to the ruin of) the economy!!
 
Bawbee said:
Can you guys who say that VAT is set to rise to 20% care to offer some source of where this is stated?
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I haven't said so yet but.... I'm sure that it will go to 20% at some time in the next 15-18 months. At 17.5% it will be one of the lowest in Europe. The Treasury will need the income - badly.
 
Well, not quite, but it won't help thats for sure!!
 
Bawbee said:
Can you guys who say that VAT is set to rise to 20% care to offer some source of where this is stated?
Click to expand...

It was widely rumoured at the time of the cut - obviously Darling wasn't going to come out and say that they were planning to increase the vat past the original rate - even he's not that stupid....
 
Flash In The Pan said:
It was widely rumoured at the time of the cut - obviously Darling wasn't going to come out and say that they were planning to increase the vat past the original rate - even he's not that stupid....
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Amazingly.
 
faster4_tec said:
its an expensive country/economy to run! Don't like it, move somewhere else :p
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If I thought I could afford it, I would! But most of my income has been diminished by the downturn!
(only kidding, I love Old Blighty!)
 
Ohh....just caught up on this thread, maybe I should not have been slightly political in my op:D.
 
Lynton said:
Like a 2.5% cut in VAT sped up the economy.............. that £500 lens is now £487.50
woo-hoo!!!
Click to expand...

actually it's not even that good, the £500 lens is actually £489.36, assuming the company didn't just pocket the difference anyway.

The whole exercise was a pointless and wasteful move by an inept chancellor trying to pick up the pieces left by the previous inempt chancellor.

The VAT cut did nothing significant to increase consumer spending and simply took a great deal of time and effort for businesses
 
as raathislte just said, you never really had 2.5% off in many palaces it was just 2.13% as it was the difference between the price they sell it to the price they buy it or something like that... anyways it hasnt really made any difference from what i can see. When it did come in first, we were all breifed on how to lower the prices automaticaly and retail stores offere the cut a few days early to try and entice people in

A few months on and prices have gone back up to normal. None has asked me about the fat decrease for months. Whereas before a laptop may have had a few quid knocked off it, now they are just back to normal price.

I think the idea was that companies make more profit, customers come out and spend more, therefore the company has to may more tax on what it takes... or atleast thats the gist i got of it.
 
blue max said:
All the talk of palaces and fat decreases makes me wonder if you are talking about the same country Dylan :D

Graham
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Huh? No im just saying if you go in to one of the big retail chains everything now ends in .99, .98 or .97p like it was before there was any decrease. All i am saying is that now it is not in the news any more, people are not bothered about it.
 
Dylanlewis2000 said:
Huh? No im just saying if you go in to one of the big retail chains everything now ends in .99, .98 or .97p like it was before there was any decrease. All i am saying is that now it is not in the news any more, people are not bothered about it.
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I am sure you are very passionate about your opinion, but I was just pointing out a few words that you got wrong in your haste. Just kidding mind.

I actually agree with you and it is rather academic. Pain in the butt if you have to deal with this change (I do), so I'm thinking of deregistering for vat entirely as it is just optional for me. I am on the flat rate scheme and made a little bit out of vat, but when they changed the rate, I made a little less. Guess who ends up paying for the cut!

Graham
 
To be fair, the cut in VAT did exactly what it was intended to do with me. Whilst it is low I bought a conservatory and new car. I spent a considerable amount supporting several industries - something that for me was a long term plan rather than short term and saved quite a few quid in the process - loans are cheap and slightly less tax.

It just occurs to me that I appear to be supporting Labour policies. If it happens again please book me in for mental assessment.

Chris
 
Lynton said:
was always going to happen since was reduced to 15% for a year or so. doesnt it go back up in December?

Like a 2.5% cut in VAT sped up the economy.............. that £500 lens is now £487.50
woo-hoo!!!
Click to expand...
I agree, its no big deal.:D
 
yeah it was a pain in the bum when a few thousand prices printed out :-)
 
raathistle said:
actually it's not even that good, the £500 lens is actually £489.36, assuming the company didn't just pocket the difference anyway.

The whole exercise was a pointless and wasteful move by an inept chancellor trying to pick up the pieces left by the previous inempt chancellor.

The VAT cut did nothing significant to increase consumer spending and simply took a great deal of time and effort for businesses
Click to expand...

Ahh beat me to it...

The VAT cut was as much a political stunt as the 50% marginal tax rate... Even a humble graduate economist can see the government was panicking and wanting to show that they were taking action.

Although I will be voting out GB and his Labour chums, bailing out the banks was the right thing to do. Otherwise it would be much, much worse...
 
Galaxy66 said:
Heard our "decisive" government are to increase the vat back up to 17.5 % !

Something to bear in mind if you are considering buying new at the moment.
Click to expand...

It's not just new some second hand shops have to add vat too:thumbsdown:
 
Edtog said:
Unless you are a retailer and have to change all your prices again.
Click to expand...

The small retailers I've spoken to just increased their prices. However, it still had the effect that the governement intended - putting more spendable income in the pockets of the population. They don't care if the end consumer pockets the extra cash and then spends it, or if the small trader pockets it and spends it. As long as somebody spends it, then the government's happy.

Even where the VAT is reduced (and M&S still charge slightly less than the ticket price - no repricing for them when it goes back up) the difference in a single item may seem insignificant and not worth it. But the total amount of extra cash flowing into the system was quite substantial and may well have had a positive effect.
 
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