VAT rate expected to be cut

[Arianna]

If this happens (which I expect it will) this will affect everyone who is VAT registered or deals with VAT registered companies:

http://news.bbc.co.uk/1/hi/uk_politics/7744273.stm

Arianna

[DaisychainBaby]

yeah I read about this this morning too...I'd be interested to see if companies pass this on to their customers or not!

[Arianna]

yeah I read about this this morning too...I'd be interested to see if companies pass this on to their customers or not!

It'll probably depend on how people calculate their prices I imagine. If someone has a base price and they just add the vat onto it, it'd be easier to just change the vat rate as opposed to the base price - but I'm not vat registered (no where near needing to be LOL).

I guess it's just a wait and see.

I know it's going to slightly muck my bookkeeping side up as I'll need to do a bit of extra work for my vat registered client's as one day it'll be 17.5% and the next will be 15%.

Arianna

[DaisychainBaby]

yeah I was moaning about the book-keeping too! They say something like that, but then I start wondering about how on earth they ensure it is implemented everywhere by everyone and if they're going to announce an official time/date as to when this kicks in!

[Emsickle]

I wonder how long they mean by temporary....

Our prices are always such and such, plus the VAT.

Will be interested to see what date this will be coming in (if it goes ahead).

Will have fun sorting the books out then (hooray - can you detect any sarcasm there :cheesy:)

[Arianna]

yeah I was moaning about the book-keeping too! They say something like that, but then I start wondering about how on earth they ensure it is implemented everywhere by everyone and if they're going to announce an official time/date as to when this kicks in!

I'm guessing they will announce an official date that it will happen which would make it much MUCH easier as then plans can be put in place. I think they'll have to provide guidance to people in how to implement the change etc properly.

Arianna

[Arianna]

I wonder how long they mean by temporary....

Our prices are always such and such, plus the VAT.

Will be interested to see what date this will be coming in (if it goes ahead).

Will have fun sorting the books out then (hooray - can you detect any sarcasm there :cheesy:)

Yeah I'm going to be paying close attention tomorrow (or as much as Eithne lets me) as I'll need to notify all of my bookkeeping clients. I'm not looking forward to that. LOL

Arianna

[Miranda]

Personally I can't see the point. When the VAT rate on menstrual products was dropped from 17.5% to 5% NONE of the high street shops dropped the prices on a premanent basis - they dipped for a couple fo months then went back to exactly where they were before. So I can't see the big companies will drop prices by that amount, can't see it'll work.. And I like getting my VAT reclaim back in.

[Arianna]

Personally I can't see the point. When the VAT rate on menstrual products was dropped from 17.5% to 5% NONE of the high street shops dropped the prices on a premanent basis - they dipped for a couple fo months then went back to exactly where they were before. So I can't see the big companies will drop prices by that amount, can't see it'll work.. And I like getting my VAT reclaim back in.

I know any money we save, we'll be using to pay off any debt we have - like my student loans - not using it to buy up stuff in the shops.

Arianna

[blush]

The real problem here lies with all these banks,credit card companies, catalogues store cards etc.They charge extortionate interest rates, offered endless credit to those who couldn't really afford it and now those people are in trouble.Cutting vat will not help these people.any savings will go in repaying debts and interest charges not in buying more things in the shops.
SO how about a 6 month freeze on all interest charges to help these people out and then cap the interest charges to a realistic level after this .
Oh and student loans, they should be scrapped anyway up to a certain level.How on eath do they expect to have a highly skilled workforce when they are constantly penalised for trying to better themselves.
The country is in a complete mess and knocking 2.5% off vat is not really going to achieve much is it?

[Arianna]

The real problem here lies with all these banks,credit card companies, catalogues store cards etc.They charge extortionate interest rates, offered endless credit to those who couldn't really afford it and now those people are in trouble.Cutting vat will not help these people.any savings will go in repaying debts and interest charges not in buying more things in the shops.
SO how about a 6 month freeze on all interest charges to help these people out and then cap the interest charges to a realistic level after this .
Oh and student loans, they should be scrapped anyway up to a certain level.How on eath do they expect to have a highly skilled workforce when they are constantly penalised for trying to better themselves.
The country is in a complete mess and knocking 2.5% off vat is not really going to achieve much is it?

If they did cut student loans it wouldn't help me as mine are in Canada. LOL

Cutting the VAT is only one idea and it may or may not even go through.

I agree it's down to the lending that has happened and gotten out of control - that's what needs to be dealt with.

Arianna

[babybiz]

It's a MAJOR pain in the arse, firstly I don't see that tiny bit of saving making a damn bit of difference to the consumer when companies are already doing 20% - 50% sales. Secondly the cost and time required to recalculate and install the prices of every product on my site for what will amount to hardly any payback means I'm dreading it. I'm just hoping that I've missed some major benefit here. What I'm thinking of doing is just applying a storewide discount of 2.5% instead that would apply at the checkout at least in the short term.

[Miranda]

If they did cut student loans it wouldn't help me as mine are in Canada. LOL

Arianna

Surely a good move to pay off now due to the exchange rate getting you more Canadian $ to the £? I think we'll all pay off what we can/ hold on to our money and won't spend whatever the outcome..

[Arianna]

Surely a good move to pay off now due to the exchange rate getting you more Canadian $ to the £? I think we'll all pay off what we can/ hold on to our money and won't spend whatever the outcome..

If I could pay them off I'd be glad to but it's about 20 thousand dollars plus, not just thousands. :-(

We'll definitely be hanging onto any money or using it to pay off what we can.

Arianna

[friendlybaby]

VAT has been cut to 15% from 1st December (next Monday) until the end of next year.

[littlesheep]

VAT has been cut to 15% from 1st December (next Monday) until the end of next year.

Does that mean that my solicitors bill will go down then seeing as we complete on our house purchsae on the 2nd :cheesy: guess not

[friendlybaby]

Does that mean that my solicitors bill will go down then seeing as we complete on our house purchsae on the 2nd :cheesy: guess not

I'd expect it should do, but I doubt they'll voluntarily process it at a reduced rate. They'll probably charge you at 17.5% and process it through their books at 15% (not that I'm saying they are crooked or anything 123rolleye111). I'd ask them to make sure that they only charge at 15% and see what they say...nothing to lose by asking.