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2.5% reduction on VAT!

Discussion in 'General Chat' started by jojo, Nov 24, 2008.

  1. jojo
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    jojo S3 Drift King! Staff Member Moderator

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    [Nov 24, 2008]
    As the title suggests, is this a good idea or not by the Government in a bid to aid our crashing economy?

    Discuss.
    #1
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  3. jcs356
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    jcs356 Brum brum

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    [Nov 24, 2008]
    On the run-up to xmas we'll start seeing strange prices in the shops - £8.77, then come the new year when everyone has forgotten, they'll get rounded back up to £8.99 and the shop will just trouser the difference.
    #2
  4. Les 51
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    Les 51 A pint of Diesel please!

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    [Nov 24, 2008]
    Not going to help my business one bit, just another bit of b*****it by the government!
    #3
  5. AndyMac
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    AndyMac Moderator Staff Member Moderator

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    [Nov 24, 2008]
    "Sale now on with up to 2.5% off!
    compelling isn't it?
    What the **** is the point? Think of the logistical nightmare for a lot of retailers let alone anything else. They'd be far better off putting 70% tax on unhealthy foods and subsidising healthy ones seeing as obesity is a far bigger threat than smoking.
    #4
  6. fingermouse
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    fingermouse thats me

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    [Nov 24, 2008]
    wow on £1000 thats £25 what a joke you can save more then that shopping around. for a family spending £10,000 thats £250 that wouldn`t even tax the car so means feck all to me
    #5
  7. abdus
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    abdus Top Gear VCDS Map User

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  8. richs2891
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    richs2891 I cant spell !

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    [Nov 25, 2008]
    Waste of time as they are giving with one hand and taking more (as usual with the other hand) ie the increase on fuel. The reduction in VAT rate is going to cost compnaies more than it will save in reprinting stationary cost and having systems altered to reflect the new rate !
    Personally I try and create a bit of a feel good factor and try to make it look like we have more money in out pockets by, leaving the VAT rate the same, dont mess with the petrol, possibly lose / reduce VAT on heating and then put an increase on things that dont need but make lots of money for the goverment ie cigs and booze !

    Richard
    #7
  9. fingermouse
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    fingermouse thats me

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    [Nov 25, 2008]
    yup up duty on booze and put the final nail in the pub trade coffin great idea :(
    #8
  10. voorhees
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    voorhees Moderator Staff Member Moderator

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    [Nov 25, 2008]
    How the hell are people without jobs going to buy things to kickstart the economy?
    #9
  11. Just Plain Old
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    Just Plain Old Active Member

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    [Nov 25, 2008]
    The marxist bastards that have taken control of this Country, have all but destroyed society with uncontrolled mass immigration,,,, and are now in the final throws of bankrupting us all for generations to come.........
    #10
  12. voorhees
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    voorhees Moderator Staff Member Moderator

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    [Nov 25, 2008]
    Look on the bright side they are making sure all vehicles on the roads will be taxed and driving within the speed limit :friends:
    #11
  13. fingermouse
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    fingermouse thats me

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    [Nov 25, 2008]
    oh he upped duty on fuel and booze lol needs to wear a mask next time hes on tv , oh well we will be a 3rd world country if Labour stay in power.

    wonder if this is a plan to stop imigration feck the country so much no one will try and come here lol
    #12
  14. Gti Jazz Blue
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    Gti Jazz Blue Active Member VCDS Map User

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    [Nov 25, 2008]
    Causing us a significant increase in call volume this morning. 41 so far in the 2 hours we have been open. Now that is the usual volume for a busy working day (the whole 8 hours). 90% of them have been on the VAT question.

    Our main function here is as a help desk for a Legal Accounts Package.

    Thanks d***h**d.

    Not thought through at all as far as I can tell.

    Sorry but I think we should pull all of our troops back to the UK now, I'd love to know how much of the Governments forcast of 57% of GDP Government debt by 2013/14 that would save.

    Paul
    #13
  15. Nilz
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    Nilz Defo worth the wait :)

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    [Nov 25, 2008]
    Waste of time.....give us a cut on Tax and NI, then maybe WE will have a bit more money to spend on WHAT WE WANT, after all WE earned it!!!

    What is the point of cutting a few pence on shopping items, food isnt VATTED anyway, so not going to make much difference to the average 2.4 is it??

    Stupid, put the money in our pockets, where it belongs.
    #14
  16. diesel-a4
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    diesel-a4 Stoned As Fuk

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    [Nov 25, 2008]
    i just cant stop thinking to myself if everyone hates labour so much then ya shudnt have voted for them but then it hit me, our other choices arent much better
    #15
  17. motorbikez
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    motorbikez Active Member

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    [Nov 25, 2008]
    Total waste of time, cutting VAT on gas and electricity bills would have been more useful.I suspect most retailers will not cut their prices and just use the drop in VAT to increase their meagre margins.
    #16
  18. buckas
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    buckas Member

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    [Nov 25, 2008]
    we need another guy fawkes person, this time suceed!
    #17
  19. motorbikez
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    motorbikez Active Member

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    [Nov 25, 2008]
    Here here.
    #18
  20. fingermouse
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    fingermouse thats me

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    [Nov 25, 2008]
    a bomb would be too good for them, bring the troops back and send our goverment out there lol
    #19
  21. Khufu
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    Khufu Active Member

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    [Nov 25, 2008]
    waste of time & burdeon on small business with the extra work involved.
    #20
  22. missviper
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    missviper Member

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    [Nov 25, 2008]
    course most retailers will not cut their prices. It will cost the more to do so..
    Also were stilll payin the same if not more. are NI is goin up..
    Its so s**t out there at the moment
    #21
  23. jojo
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    jojo S3 Drift King! Staff Member Moderator

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    [Nov 25, 2008]
    You've got the calculations wrong dude, it's 2.5% off VAT, not 2.5% of the actual price, so a saving on £1000(inclusive of vat) is actually £21.28p!

    This has goosed my prices for my place I tell you, and you think I'm going to print off a whole load of menu's for this SH1T!? I'll just say to the customers I was going to put the prices up anyways, the Government has done me a favour lol, imagine the thought of saving 3p on a bag of chips or 9p on a Curry with Rice, it's almost embarrassing, but of course it all adds up if you look at it from the whole of UK point of view!
    #22
  24. fingermouse
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    fingermouse thats me

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    [Nov 25, 2008]
    your right jojo , Its such a small amount I just estimated the value. Its actually not as good as I guessed lol my abacuss is sticking
    #23
  25. JohnboyC
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    JohnboyC Member

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    [Nov 25, 2008]
    The 2.5% reduction in the VAT rate is not even worthy of discussion......waste of F&^%$(*G time ! As someone above has already stated the reduction should of been on Income Tax or the other Income Tax known as National Insurance.

    How are all those people currently in mega debt going to "kick start" the economy buying goods witha lower VAT rating...oh yeah I forgot they will just borrow more like those morons currently masquerading as our government !
    #24
  26. Caesium
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    Caesium My BM is fixed!

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    [Nov 25, 2008]
    It might not mean much to us but it means billions lost to the government coffers, which will need to be replaced somehow.
    That's Labour all over, give with one hand, take away with the other.
    There is so much spinning, U-turns and backtracks with this government its hard to believe anything they say.

    If you look at the price of Crude, its about $55 a barrel, and it WAS about $140 at one point, so if its gone down by nearly 2/3rds, why is the price at the pump still so ******* high? its all a joke.
    #25
  27. fingermouse
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    fingermouse thats me

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    [Nov 25, 2008]
    hes put 30 quid on a long haul flight, didnt shout that out did he
    #26
  28. Les 51
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    Les 51 A pint of Diesel please!

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    [Nov 25, 2008]
    Never did, Never will!!!
    #27
  29. benw123
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    benw123 Moderator

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    [Nov 25, 2008]
    That was my first thought actually. I wonder how many software packages have the VAT hard-coded (i.e. not easily editable)? The VAT change will screw up many business' invoices this month and the next probably, and people creating invoices on pre-printed stationary with the VAT shown will have full recycling bins very soon too.
    #28
  30. Gti Jazz Blue
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    Gti Jazz Blue Active Member VCDS Map User

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    [Nov 26, 2008]
    Well both our old legacy package and our new SQL based one have the ability to have multiple rates with one set as the default.

    The tally in the end was 74 calls logged (email or phone) over the day and I'd say 90% of those were regarding the VAT.

    That is the highest number in a single day in the 14 years that we have been trading.

    Needless to say Mr Darling isn't popular here.

    Paul
    #29
  31. Caesium
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    Caesium My BM is fixed!

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    [Nov 28, 2008]
    I think you'll find you're wrong mate, as VAT makes up 17.5% of the pound and VAT is going down to 15% which is 15p in the pound so you are saving 2.5% which is 2.5p in the pound. Unless you buy things ex vat that is.
    #30
  32. jojo
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    jojo S3 Drift King! Staff Member Moderator

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    [Nov 28, 2008]
    I'm not sure what you are getting at? When you go out and buy most thing off retailers as an example, which is inclusive of VAT, then 17.5% of a pound does not make 17.5p. You are in actual fact paying for an item which is 100% for it's retail price +17.5% VAT, so lets call this 117.5% as most peaople will recognise it as - correct? a 2.5% reduction in VAT is not a 2.5% reduction on the total price, my calculations shows it's 2.218* off the price you are paying inclusive of VAT, how am I incorrect?

    Using your example of a pound, it's a 2.2p saving, not 2.5p as you suggest, if vat is already included in your pound.

    * = rounded up.
    #31
  33. alijames
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    alijames Active Member

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    [Nov 29, 2008]
    Although the VAT reduction is supposed to balance out the rise in fuel duty, if you are a VAT registered company that buys fuel (eg haulage) you pay more for your fuel, but can claim less back in VAT, so effectively a ~4p per litre rise in fuel costs!

    Cheers,
    #32
  34. JohnboyC
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    JohnboyC Member

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    [Nov 29, 2008]
    Right folks, just do the maths (sorry its the Systems Engineer in me)

    So, assuming my imminent cambelt and waterpump change is to cost £460 at the current rate of VAT of 17.5%

    Therefore the cost of the job with NO VAT is

    460/117.5*100 = £391.49 (i.e. the VAT at 17.5% equates to £68.51)

    With the new VAT rate of 15%

    £391.49 * 15/100 = £58.72

    So the job will now cost £450.21

    saving me around a tenner - hmm, great...but I s'pose better in my pocket than Gordon Browns to p*ss up the wall !

    Do the workings out for a £30 pair of jeans you save £0.64 so will that make you decide to buy jeans or not.....err I think not.........LOL.

    Instead of p*ssing about with VAT the rate of Income Tax or National Insurance should be been changed !!!!!!!!!
    #33
  35. jojo
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    jojo S3 Drift King! Staff Member Moderator

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    [Dec 2, 2008]
    Has anyone reaped the benefits of this 2.5%vat reduction today? I didn't have one single customer ask me for their 9p off their meal today, but one did mention that Maccy D's was 11p off their £4.95meals lol.
    #34
  36. NHN
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    NHN Retrofitter - Audi - VW - Skoda - Seat Site Sponsor VCDS Map User

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    [Dec 2, 2008]
    complete waste of time, hasnt benefitted anyone tbh, gives in one hand takes in the other, so what exactly has that complete tosser Brown got in for us next, he hasnt done anything to help this situation, these bloody banks are a joke, they took risks on sub prime & dodgy loans for people even on benefits, self cert etc now they are fecked we have to pay out of the tax to help them out, what about them dropping all there charges to help us out then, bet they dont remember that when the day comes they are back on there feet that we the public paid for them to stay in business huh!!!!!

    Its the people that didnt take the risks & didnt get credit upto the eyeballs that are gonna pay for this aswell by losing jobs, losing business etc, I also blame these estate agents pushing the prices up way to much & it is them making sellers believe there house is worth eg. 50k more than the market would suggest, they have alot to answer for aswell
    #35
  37. Turkster
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    Turkster Bro.Paul 2.5TDI Quattro Sport

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    [Dec 2, 2008]
    every £100 i spend i can have 1 free pint of beer, like that's gonna help the people,

    Problem , Reaction , Solution,

    The make the problem
    we given them the reaction
    they give us the solution they wanted in the 1st place.
    #36
  38. quattrojames
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    quattrojames Moderator Staff Member Moderator

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    [Dec 2, 2008]
    I just bought another 2.5TDi engine for my A4. Vat was 15% not 17.5% so saved me £40 odd quid, so every little helps as they say! Will also be saving some on the fitting :cool:
    #37
  39. jojo
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    jojo S3 Drift King! Staff Member Moderator

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    [Dec 2, 2008]
    Guess you could call that a tank of fuel which would get you a long way lol
    #38
  40. jojo
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    jojo S3 Drift King! Staff Member Moderator

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    [Dec 2, 2008]
    Funny thing about this VAT cut was it started on 1st December, which was yesterday, but on Saturday, we was Chocablok, as in we had the busiest Saturday in 2008! Period. This can only mean 2 things of course(or both), people got paid, cos it's the end of the month or everyone went out to do the Xmas shopping, despite knopwing of the Tax cuts 2 days later....
    And it wasn't just me busy, my friends in the same/similar trade all reported amazing business!
    #39
  41. Les 51
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    Les 51 A pint of Diesel please!

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    [Dec 2, 2008]
    Maybe I missed it, but what do you do Jojo?
    #40

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