stuart n

From 2011 there will be an increase of 0.5% on national insurance for everybody.
The budget report today amounts to a "buy now pay later" scheme, which is exactly how we got in this mess in the first place.
Are you going to go and start throwing large amounts of cash around again now knowing that you're going to get clobbered with tax rises meaning you'll have less money from the end of next year when most people still think house prices will still be falling and we'll still be in recession?

stuart n

By the way, buy your DVD's and the likes from Play.com. You don't have to pay VAT at all then

lordharding

iTrader: (1)

Total farce

2.5% reduction

i have been in retail sales all my life and things are marked up to round pound pricing eg £199 £999 or even £1.99p

people like it and it will stay
do the idiots in power really believee retails will be charging £97.50 etc



and then charge more for booze which is what most people for to drink their sorrows at a stupid Govt


then we will all have to pay another 4% income tax in 3 years time

Duh

The Dogs B******s

Its better than nothing

jjones

it's worse than nothing, how do you think this money is going to be paid back (with interest)?

TinyO1

By the tax payers

boomer

I wonder if the stores will recall and re-print all of their (hundreds of millions of) Christmas gift catalogues with the new "cheaper VAT" prices?

That'll be a boost for the paper recyclers - oh, i forgot, the bottom has dropped out of that market as well - still, the owners of temporary storage facilities to help avoid landfill will be laughing all the way to the bank, er, oops, what bank

It is probably going to cost more to (temporarily) drop VAT by 2.5% than any amount of consumer saving.

Stoopid decision!

mb

dpb

Well i took my books up to/was visiting anyway my accountant

He relayed a conversation with a client -



> "Hello Garry,whats the budget got for us this year then"

>" err Youve got 2.5 cut in the vat rate ...."

> "And thats it..? okay ill have to get rid of a couple of the guys,nice talking with you Garry"





Help for small Buisnesses

orbix

Help for small Businesses!

I think I'm going to worse off or rather my business is.
I use the flat rate scheme, I charge 17.5% vat but pay HMRC 11% so what happens now?!

500

I wish I had a printing firm, seems like they will be the only ones that will benefit from it

Leslie

Its a pretty cheap (to them) excuse to really wind taxes up later.

Les

APIDavid

iTrader: (4)

Whats that? How does that work? Enlighten me please.

David APi

PS Whatcha gonna spend the 350 on NXG ??

r32

Dont forget that its more or less 2.5% less on everything you buy, not just flat screen TV's and the like.

fivetide

iTrader: (1)

That's the key thing here. Think of it the other way round. If it ahd gone up 2.5% people wouldn't be saying "it's only 20p off the price of an ipod what a waste of time" they'd be "money grabbing @#""££$%! government" and at the end of the day it might help a bit.

However, the payback in the longer term will be a pain and the increase in fuel duty just shows what a cash cow they treat drivers as.

5t.

Matteeboy

APIDavid - Businesses with a turnover less than a certain amount (I think it's about £150k) can go on a flat rate scheme that often saves money - ask your accountant about it.

orbix

I can’t remember the full ins and outs now but from memory:-

I’m a contractor so my business is a one man band, I don’t buy a lot of stock through the business so rather than claim VAT back on purchasers I use the VAT flat rate scheme.

There is a rate table and depending on what the business is you do there are different rates. Mine at the moment is 11%.

So I charge out my services + vat, when it comes to paying the vat bill I add together the sales + vat (@17.5) x 11% and that’s what I pay to HMRC.
It works out better for me to do it this way and my business benefits about 2K a year from it.

Evolution Stu

iTrader: (2)

Whilst i understand where they are going with this and why they are doing it, its causing me a headache and lots of outlay. I need to have all my point of sale stuff reprinted, website prices changed, eBay inventory on 130+ items removed and relisted after changing them all... this is a real ballache.

Mind you, it could have been worse, i could have been told i have only got a week to do it in. LOL

Oh, hang on... you want it done by Dec 1st? But thats only 6 days away!

I can see the majority of the UK companies just announcing a 2.5% Nett rise in prices. Much easier. Now interestingly, that means we all make 2.5% Nett profit more, which is taxable and goes to the government. Interesting...

dpb

Cunning,eh - about as underhand as we've come to expect .


I was told in the States they didnt muck around with all this stuff

- they simply gave everyone 800 quid cash

Diesel

This is a pathetic gesture that is more hassle than it is worth and will rarely be passed on on the smaller purchases. Probably good news if you are in the market for a new RR Sport though.

What WOULD have been a good and timely and a morally correct gesture (and cost less) would have been to delete the VAT on gas and electricity and insurance premiums. None of these are luxuries after all.

Bunch of absolute f wits IMHO. Over £35k 'overdrawn' for every man woman and child in the UK but with money to p up the wall on almost everything that is less important or useful. An absolute disgrace and we will all so pay in future...

D

PS and what do I do on my input/output VAT now as I'm on a flat rate

unclebuck

For the sake of a sack of votes Brown has squandered Britain's future. Instead of cutting into the massive current waste he has ensured that Britain will in the future be even less competitive than it is today with a currency that Bond owners are less likely to cherish.

Time the man was offered a quiet room, a single Malt, a revolver and a silver bullet to ensure that this particular Vampire will never suck on the blood
of the British people ever again.

tanyatriangles

iTrader: (2)

He wouldn't have the guts, he's the most gutless of a p*ss poor bunch.


Time the man was shown into a quiet room, where I would be sitting with a single Malt, a revolver and a silver bullet to ensure that that particular Vampire will never suck on the blood of the British people ever again.

Better?

GC8

With schemes like that you dont claim back input tax (you keep the difference between what you charge and what you pay out). Hopefully for people on those schemes the amountt hat they settle with C&E will be lowered too...

APIDavid

iTrader: (4)

I've already reduced regular engine build prices by £200.00 per engine on old WRX and pro rata on later WRX / STi engines where some of them benefit from a £500 reduction, that is best part of 25%, and I've reduced our hourly rate from £48.00 to £45.00 to try and help things along. That reduction is far greater than the 2.5 % that the government are offering.

Will their 2.5% make a difference?, not much I suspect, because people are just not spending and certainly not at this time running up 'til Xmas.

If you go in the retail sheds out on the retail parks ALL of them are doing 25 to 40 % reductions, just to move stock They are not going to knock off another 2.5%, because they've effectively already done that in their sales promo's.

As for putting duty up on Petrol !! what is going on ? 'They' are just not listening to any sense coming at them from the hauliers and the public about day to day costs. You can stop drinking and you can give up cigarettes, but everyone needs fuel to run their lives and all goods use fuel to get to the shops etc.

Don't get me started.

David APi

Seine

Flat rate changes all in here.

http://www.hmrc.gov.uk/pbr2008/vat-guide-det.pdf

SJ_Skyline

I love it when UB gets all foamy at the mouth, it makes NSR look like a column in the Daily Mail

Diesel

Thanks - just found it on page 43

The comment about tax going up on fuel is so apt.

They have hauliers going out of business, road blocks and protests about it and still they ignore it. Deleting the 10p tax rate that benefited the very very poorest... 'We must listen more' was the same old mantra after their bloody nose in local elections. They NEVER listen to the common sense or morally correct alternative do they?

10 billion off in VAT rather than do better things but to be shown to have been wrong about starting/perpetuating dodgy taxes in the first place.

Do not get me started as I have invoicing procedures to adjust!!!

D

OllyK

For most people their main expenses will be

Mortgage
Council Tax
Gas Bill
Electric Bill
Petrol
Groceries
Kids CLothes

Non of which are affected by the VAT change either because they are already at a reduced rate or because Darling put a corresponding increase in duty on them to keep the price you pay the same.

unclebuck

It's a quote from the Telegraph actually.

lozgti

Ok,I think everyone is agreed.

It's going to mean nothing to anybody this reduction.

Well done Labour