Tax Cuts! - Page 5

panther · 26-11-2008, 19:41

Quote:

Originally Posted by emamum

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

daylight robbery!!!

Do you pay it?

emamum · 26-11-2008, 19:43

yeah lol...i wanted it toasted if i werent having salad an sauce i woulda done it at home lol

panther · 26-11-2008, 19:48

well if people pay it......

emamum · 26-11-2008, 19:50

i sat here all day waiting for a package (that bloomin well came 10 mins after i went out!!!!) thinking about having a bmt from subway (ask emzy adn mrskitty lol) and i was bloomin well gunna have that sandwich!!!!!

Royboy39 · 26-11-2008, 21:53

Quote:

Originally Posted by derekgas

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.

You should'nt lose out at all....The invoice that you prepare is a service you provide and the date you raise the invoice.
You will not have to pay VAT at the old rate.
A £10,000 investment at the current 5% if your lucky, earns £500 per annum.
Let's not forget that you hold funds due to the Government for the same amount of time.

If an invoice was issued today for work carried out then the Vat applicable would be at 17.5%.
If an invoice was issued for job done on 1st December the Vat applicable would be at 15%.
If you have quoted for a job and the invoice date is of today then you would be quite within your right to charge at 17.5%.
Dont forget this would have to be declared and paid as output to the revenue.

Neil · 26-11-2008, 22:05

Quote:

Originally Posted by derekgas

Another vat item that gets up my nose is tea and coffee

So is it only VATable when you give it to them hot? You could give it to em cold and let them add the hot water themselves

cashman · 26-11-2008, 22:06

Quote:

Originally Posted by Neil

So is it only VATable when you give it to them hot? You could give it to em cold and let them add the hot water themselves

and subway could let ya toast yer own butts.

Neil · 26-11-2008, 22:09

Quote:

Originally Posted by cashman

and subway could let ya toast yer own butts.

Do you pay VAT on the pretend food you get in petrol stations that you microwave yourself? Can you buy it first then warm it?

Neil · 26-11-2008, 22:10

What about when I buy a minging bacon sandwich from the vending machine at work. I pay first to get it then microwave it afterwards.

claytonender · 26-11-2008, 23:53

Quote:

Originally Posted by derekgas

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.

Are you sure that you are paying VAT on tea, coffee and sugar. In fact I have just checked on the Makro website and they have both Tea and Coffee pn promotion and clearly state they are zero rated for VAT.
http://www.makro.co.uk/metro_mail/mc...ailer_16pp.pdf

If you bought your tea, coffee and sugar from a wholesaler the items should be marked as zero rated.

I think the reason that Marshalls were slapped with a big bill for providing free brews to staff is that the brews were not being declared as a 'benefit in kind' for the employees. As you are no doubt aware there is an annual limit to the what an employer can give an employee as a 'benefit in kind' before the employee becomes liable for PAYE on the benefit. However if an employer fails to deduct PAYE correctly they then become liable to pay for the PAYE owed.

claytonender · 27-11-2008, 00:02

Quote:

Originally Posted by jaysay

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

Well I have news for you I don't stick my head in the sand and I do watch news programmes. How many small to medium businessmen have you spoken too about the 'problem'. I have been speaking to a lady who owns 2 small businesses in Accrington this evening, who stocks hundreds of items and she does not forsee there being any problem at all.

How do you think businesses coped in the past when VAT rates were altered?

I take it that you are experienced in Accounts and therefore well able to comment on the matter.

cashman · 27-11-2008, 00:08

what i cannot get me head around, is how will small non computerised places alter all their prices? can't see it being so easy.

then have to change em back in a few months when VAT reverts to 17.5%.

claytonender · 27-11-2008, 00:15

Quote:

Originally Posted by cashman

what i cannot get me head around, is how will small non computerised places alter all their prices? can't see it being so easy.

then have to change em back in a few months when VAT reverts to 17.5%.

Well they just divide their current selling price by 1.175, which gives the nett selling price and then multiply by 1.15 to give the new gross selling price (with the new rate of VAT). The VAT will be 15% until 31/12/2009 so most of the stock would be presumably have been sold by then. Also unless a business has annual sales of over £67,000 it does not have to be register for VAT.

Neil · 27-11-2008, 01:10

Quote:

Originally Posted by claytonender

The VAT will be 15% until 31/12/2009 so most of the stock would be presumably have been sold by then.

That is ok if they have no stock when it changes back. As I am sure they will have stock on the shelves they will have to change all the prices again.

I still say a lot of small shops won't change the price and will just in effect increase the net price instead.

cashman · 27-11-2008, 07:40

Quote:

Originally Posted by Neil

That is ok if they have no stock when it changes back. As I am sure they will have stock on the shelves they will have to change all the prices again.

I still say a lot of small shops won't change the price and will just in effect increase the net price instead.

thats the thing i thought.

,as n aside to the tax cuts etc, britain is about to borrow 150 or so million, usa apparently trillions, according to reports, all countries in the mire will also have snouts in the trough also, i am assuming this money will come from the IMF, as aint aware of a magical bank in the sky! it prompts these thoughts to me,Where does "All" this money being borrowed originate from? n why is the world in this crap if all this money is available?