Tax Cuts! - Page 4

accyman · 26-11-2008, 10:03

i think a £200 table will still cost you £200 regardles of the new vat rate and instead of huge %20 off signs we will now see %2 vat off signs in the shops but regardless of what teh signs say the price we see items for sale at will be a price they want regardless of the vat levels

Neil · 26-11-2008, 10:06

I still can't see small shops changing prices at all, just making more money.

claytonender · 26-11-2008, 10:15

Quote:

Originally Posted by jaysay

The Problem raised by this VAT rise is that a lot of small to medium businesses are being saddled with huge cost in making these reductions, at a time they can ill afford it, and aware of the fact that in April 2010 they will have to go through the whole processes again when the rate is returned to its present level of seventeen and a half percent

I think you are mistaken about the costs involved to small to medium businesses being sadled with huge costs. Most businesses have computerised accounting systems and it is very easy to change the VAT rate, it is just means going into the master data -which shows the various parameters - and changing the percentage figure. I have been involved, at companies I have worked at, in previous VAT changes. If they are not computerised it just means multiplying the nett price by 15% instead of 17.5% to calculate the gross selling price.

jaysay · 26-11-2008, 11:10

Quote:

Originally Posted by claytonender

I think you are mistaken about the costs involved to small to medium businesses being sadled with huge costs. Most businesses have computerised accounting systems and it is very easy to change the VAT rate, it is just means going into the master data -which shows the various parameters - and changing the percentage figure. I have been involved, at companies I have worked at, in previous VAT changes. If they are not computerised it just means multiplying the nett price by 15% instead of 17.5% to calculate the gross selling price.

Apparently like most of your ilk you stick your head in the sand and don't watch news programs, that is not what a lot of small to medium businesses are say, but of course I'll bow to your superior knowledge and intellect. One man interviewed this morning was having to reprice 6000 items and was having to update his stationary by Monday to comply with government demands, these are not imaginary people but real people living in a real world

entwisi · 26-11-2008, 12:05

What about all the stationary that they have had printed with "VAT @17.5%" on ?

Also re teh computerised systems, quite a few small businesses do not understand or may not even have access to teh global parameters in order to change them and will have to pay someone to do it for them. God helps you if you had some bespoke software written where its hard coded inside the app and not readily accessible

jaysay · 26-11-2008, 12:12

Quote:

Originally Posted by entwisi

What about all the stationary that they have had printed with "VAT @17.5%" on ?

Also re teh computerised systems, quite a few small businesses do not understand or may not even have access to teh global parameters in order to change them and will have to pay someone to do it for them. God helps you if you had some bespoke software written where its hard coded inside the app and not readily accessible

Exactly the point I was trying to make entwisi, but as I've always said there's non so blind as them that can't see, or don't want to

Neil · 26-11-2008, 13:00

Quote:

Originally Posted by entwisi

What about all the stationary that they have had printed with "VAT @17.5%" on ?

They were a little short sited as VAT is a variable that could be changed at any time.

derekgas · 26-11-2008, 16:53

As far as prices are concerned, someone has to be paid to go round and change them all, this works out more expensive than the savings, without mentioning the raise in employers national insurance, so you are unlikely to see price reductions on everyday small to medium items, only on things like cars etc. You also have stock that was paid for at the old rate, so selling it on at the new rate will cost the middle men three pound per hundred approximately.

andrewb · 26-11-2008, 17:08

It bothers me that the worst off are going to benefit less. VAT is generally charged on luxury goods, not essentials, what difference does this pre budget report make to a family on a low income struggling to pay for the weekly food bill? When in a few years time they will be paying through the nose with increased taxes to pay for the massive borrowing binge the government is on at the moment.

Royboy39 · 26-11-2008, 17:37

Quote:

Originally Posted by derekgas

As far as prices are concerned, someone has to be paid to go round and change them all, this works out more expensive than the savings, without mentioning the raise in employers national insurance, so you are unlikely to see price reductions on everyday small to medium items, only on things like cars etc. You also have stock that was paid for at the old rate, so selling it on at the new rate will cost the middle men three pound per hundred approximately.

You are right with prices having to be changed on individual items such as newsagents, toy shops and other retail outfits....that does cost money.
On the second part regarding VAT. The VAT paid on goods by retailers or manufacturers is claimed back from the government. The new rate has to be paid to the government.
If an item was purchased with 17.5%. and the new rate is 15% - 15% is what you would have to pay on irrespective of what VAT was claimed.

Benipete · 26-11-2008, 19:00

Of course now that we all owe £10-000 pounds the good news is that we can pay ourselves back in a couple of years time as long as we pay the interest.

Beam me up.

derekgas · 26-11-2008, 19:31

Quote:

Originally Posted by Royboy39

You are right with prices having to be changed on individual items such as newsagents, toy shops and other retail outfits....that does cost money.
On the second part regarding VAT. The VAT paid on goods by retailers or manufacturers is claimed back from the government. The new rate has to be paid to the government.
If an item was purchased with 17.5%. and the new rate is 15% - 15% is what you would have to pay on irrespective of what VAT was claimed.

But the retailer loses 3 quid in every hundred for however long the stock is carried, compared to what they buy in now. In terms of work carried out last week, which in our case would be around £5000, if we changed the invoice (from the quoted figure), then overall we lose out, the vat on labour rather than products is the issue. some of our products are bought in at the full rate, and sold on at 8%, and we cant claim that back for three months as it is, and so lose interest too.

pipinfort · 26-11-2008, 19:32

Apparently the VAT cuts will begin in the supermarkets as of friday......

emamum · 26-11-2008, 19:37

how come i had to pay an extra 50p to have my subway sandwich toasted because of vat?

derekgas · 26-11-2008, 19:40

cold food doesnt attract vat I dont think, but when you toast it, it is hot food. Another vat item that gets up my nose is tea and coffee, we buy the stuff in for staff, and pay vat on it, but cant just claim it back, we have to charge it with vat to ourselves. So if we buy sugar, we claim the vat back, but have to add vat to the cost first and pay the difference, otherwise we would have to pay the vat on what you would charge to sell the tea/coffee on. Marshalls mono used to have free brews for the staff, then they got slapped with a £10,000 vat bill because they claimed the vat on the stuff, but didnt pay it on the making up.