stevebt

iTrader: (8)

I was in a huge pub today for my tea and it was the 1st time ever they have given me an itemised reciept. At the bottom of the reciept was the price I paid plus 17.5% VAT ?? I worked it out on my phone to see if it was just easy printing of the reciept??? But they definately charged me 17.5% VAT. This is a huge pub which does a massive trade in food especially sunday lunch's. I asked some staff and they said food was charged differently, errr yeah right VAT is now 15%. Is there anything I can do to stop them ripping people off?? It was only £1 in my case which I wasn't offered a refund or a free drink But how many people have paid over the top??? and not just for food but all pints as well.

PaulC72

If they are showing and charging 17.5% vat on the receipt you are entitled to a refund.

RyanSTI

iTrader: (1)

its harder for pubs though, cos the food is 15% vat, but the booze is still 17.5 isnt it?

stevebt

iTrader: (8)

Vat is what it is and thats 15% for everything. I only noticed due to a reciept but this is a very busy pub so how mnay people/£ have they ripped from people???

RyanSTI

iTrader: (1)

so how does it work for booze and **** then?

ronjeramy

iTrader: (1)

VAT plus duty?????

Boro

iTrader: (1)

A call to trading standards would sort it out.

MattW

no, they put up duty to compensate but it is 15%

stevebt

iTrader: (8)

How do I sort that out as I told them they were overcharging and they looked at me like I was some moaning ****

Boro

iTrader: (1)

Call trading standards, tell them the pub charged 17.5% vat and they will do the rest. I pressume they deal with stuff like that.

Scooby Soon!

Why do people just make up rubbish and state things like this as if its fact?

Retailers did not have to pass on the VAT decrease it is at there discretion!

All they are guilty of is not updating the till system/paperwork which is being overlooked by HMRC because of the short notice of the introduction of the VAT change, if you already knew the price of the item before you ordered it I dont think they are really ripping you off!

billythekid

If he was given a vat breakdown thats not true.

I.e he paid £100 for his lunch and was charged £17.50 VAT giving a total paid over of £117.50. Now its fine for retailers to put their prices up to keep the "total" price the same but they will still have to show 15% VAT and this will go on their VAT return.

It also means that their accounts wont match their vat return and this will raise quesions with HMRC.

Luan Pra bang

If the menu clearly showed the VAT inclusive price then you are basically being a moaning git you new the VAT inclusive price so what is your problem ?

Luan Pra bang

Why so ? Their accounts will be based on revenue recieved minus 15% VAT

stevebt

iTrader: (8)

The price of the food has been set for months, the government has brought a VAT cut in to help the economy not line the pockets of pubs who can't be bothered to alter thier pricing at the tills.They are not guilty of updating the paperwork system as I worked the VAT out and they are CLEARLY CHARGING 17.5% VAT.

So you are saying the VAT rate is optional ??? I don't think so as VAT is now 15%. If I were to charge a customer 20% vat for a job what do you think they would say ??? Its only 2.5% more than the origiginal rate so whats the big deal ???

what would scooby do

Luan Pra bang

Do you quote prices inc or ex vat though the pub quotes an inc vat price.

I bet you are fun on a night out all this for a quid. God forbid they made a mistake on your bill and added an extra .50pence by mistake bet you would be on the phone to watchdog and the daily mail in a heatbeat.

stevebt

iTrader: (8)

I'm not normally this bad

billythekid

When I say "accounts" I dont mean companies returns I just mean the books in general. If they get a VAT inspection then they will probably notice this in 5 seconds. If they are a larger company, then HMRC might notice something odd before an inspection.

Scooby Soon!

No there till is making the wrong calculation on the breakdown of the receipt, they will be calculating the vat correctly at "head office" its a completly different kettle of fish if the VAT was being added on afterwards but its not you are buying something at a VAT inclusive price. In regards to the cut of VAT and people lining there pockets would you be happy to see prices increase to cover the cost of changing all of the menus (twice, once at the start of this and once at the end) as well as all the other gumf thats needs changing behind the scenes?

Although Gordon Brown would probably make you believe its just a case of typing in 15 instead of 17.5 in to a computer system in real life this does not and has not worked!

phil_wrx

iTrader: (2)

but arnt companys getting round changing price lists and menu's by deducting the 2.5% extra vat at the checkout?

Gordo

The pub has done nothing wrong here.

The original poster here knew how much the drink/food cost in total and was happy to pay that. The pub has decided not to pass on the 2.5% saving to customers and is therefore not reducing their prices - that's their choice (in a sector where their margins are already very thin) - an incorrect breakdown of price/VAT on the recipet is allowable because the VAT change was very short notice and is only temporary.

Some companies are charging less at the tills - some aren't. In reality it's the fault of our hapless government and the chancellor for thinking this was a good idea. It costs a fortune and is an administrative nightmare to be messing around with pricing at point of sale merely on a whim of the government!

Gordo

PaulC72

Can you point me in the direction of the information regarding this please as I always thought that a vat deduction had to be passed on if it was itemised on a receipt at it is a tax not a profit margin for the company.

I can then update my knowledge base to provide people with the correct information.

Many thanks.

jods

I beg to differ.

billythekid

+1

coolangatta

I think, at the very least, you are being 'generous' to the retailer!
They are being underhand if not completely dishonest IMO.
They were not selling food at a loss when giving 17.5% to HMG, so are making 2.5% more now.
A simple notice or two around the bar stating their policy of pocketing the difference would be more honest than a receipt that is blatant in it's deceit.
Nothing to do with being a tight wad, just expecting openess is surely to be expected. I suspect if your employer was to deduct an extra 2.5% income tax, than was payable, from your salary you may kick up a bit.

Abdabz

LOL - The percentage shown on the receipt and the amount charged has to be 15% now by law as VAT is 15%. The pub is not VAT compliant if it charging or stating they are charging 17.5%.

All this "passing on to the customer" option is misunderstood. When a retailer is told they have an option as to whether or not to pass it on to a customer, their receipt and VAT return still has to show 15% but they are entitled to raise their retail price by 2.5% should they so desire.

The pub should be reported and never frequented again. Sorted.

Geezer

I work in IT for a major bank, and rates charges literally are a case of typing the new rate in!

Of course, not all retailers may have systems as sophisticated as ours, but I bet most large ones do, and the smaller ones will have bought off the shelf software which probably allows a VAT rate change easily.

As for it being optional, a government set tax is not optional!!!! If they have it as 17.5% on the receipt it is breaking the law as it is innaccurate.

However, as has been pointed out, it is perfectly legal to raise their own prices so that the end customer pays the same.

Geezer

Paul_M

The fact that 17.5% is printed on the receipt creates some issues, regardless of what happens at head office. If this were part of a business meal, I believe the VAT could be reclaimed at the price set on the receipt, which is clearly incorrect.

Personally I wouldn't be too concerned about the quid or two, but if HMRC are receiving tens of thousands of returns with the wrong VAT rate I don't think they'll be too happy

john_s

iTrader: (1)

They might not mind if they are getting extra VAT paid to them.