Shops not passing on VAT cut

[Muffin`]

Fuel

Duty increased to remove the effect of VAT drop

utilities

Different VAT rate

lots of food

Luxury food

clothes

Clothes shopping is a luxury in my opinion, seriously 2 pairs of jeans and 10 plain t-shirts do me, never into the whole ‘fashion’ thing

toiletries

Still good value though, still talking very small amounts.

 

[Energize]

Luxury food

Yeah orange juice is such a luxury....

There's no such thing anyway, food is food, luxury food as you put it gives more energy per £ so why on earth should it have vat charged on it because it tastes good?

Clothes shopping is a luxury in my opinion,

Unfortunately the law regarding public decency doesn't agree.

There should be no vat on any of these items because they are essential.

I'm getting sick of people thinking that the VAT cut was for them, as the end consumer. It is not. It is simply so that the extra 2.5% is not in the government's coffers, and in the economy. In fact it was actually for the benefit of small businesses that are struggling to stay a float.

Tell that to brown who continously says it's to put money in the peoples pockets by reducing their christmas shopping bills...

 

[Dj_Jestar]

There's actually a list of essentials that you don't pay VAT on.. biscuits, milk, bread, butter, and some others, are 0% VAT.. utilities like leccy and gas are 5%...

 

[Malt_Vinegar]

I'm getting sick of people thinking that the VAT cut was for them, as the end consumer. It is not. It is simply so that the extra 2.5% is not in the government's coffers, and in the economy. In fact it was actually for the benefit of small businesses that are struggling to stay a float.

So in short, suck it up, it's only 2.5%, you whining brat.

Not one to post like this normally... but...

+1

 

[Helium_Junkie]

11 quid a month. And thats to somebody with a disposable income level of 500 quid.

It's absolutely NOTHING.

Hmm, to me thats a CD, or a film, or a bottle of wine (even two!)...
I'd quite like one of those things

 

[Pneumonic]

They haven't done this because they don't want people saving money. They want people to see cheaper goods in the shops and spend us out of the recession.

How anyone can complain at getting money off their purchases, I don't know. It's not lots, but taking this hypothetical 73p, ooh there's my parking paid for.

So given that a lot of shops are having massive sales with up to 40% off and this isnt getting people to spend... what is an extra 2.5% going to do? Its pointless...

Yes cutting tax may have caused people to save more.. but it would also have caused people to feel better off which I think would have resulted in people spending more than 2.5% reducting in VAT

I dont argue that they didnt need to do something... but I dont personally see that 2.5% reduction in VAT (which doesnt look like its being passed on in most cases) is worth the extra NI contributions we will all be paying in the future... I am now paying to make retailers better off!!

 

[Sanguinnus]

I am jack's complete lack of surprise

 

[Muffin`]

Yeah orange juice is such a luxury....

Indeed it is

There's no such thing anyway, food is food, luxury food as you put it gives more energy per £ so why on earth should it have vat charged on it because it tastes good?

Because kj has nothing to do with it, you don't need it to live.

Unfortunately the law regarding public decency doesn't agree.

That's why you can get free clothes \o/

There should be no vat on any of these items because they are essential.

A £400 ball gown is essential? More non-essential purchases happen more than essential, so it gets taxed. You can get t-shirts in Matalan for 50p, I personally opt for the £3 H&M ones, as they feel nice. Or just buy stretchy kids clothes.

 

[Puzzled]

We have a small shop and we won't be passing on the VAT cut, it may seem like we are screwing the customer but take into account these points:

1. Our costs have been increasing all year and we can't raise prices to keep the same profit margin as people would complain and shop elsewhere.

2. The cost of putting new labels on everything would be ridiculous.

3. We can't just take off 2.5% at the till as not all items have VAT added.

4. If we did reduce items by 2.5% we would have a shop full of oddly priced items that would mean running to the bank every hour for more change.

Feel free to snipe at the large companies but small businesses have been hit hard all year, this little bit extra might just keep a few from going down the pan.

 

[Muffin`]

Tell that to brown who continously says it's to put money in the peoples pockets by reducing their christmas shopping bills...

That's because it's a total spin, never believe what comes out, analyze it.

 

[Energize]

Because kj has nothing to do with it, you don't need it to live.

You need energy to live...

A £400 ball gown is essential? More non-essential purchases happen more than essential, so it gets taxed. You can get t-shirts in Matalan for 50p, I personally opt for the £3 H&M ones, as they feel nice. Or just buy stretchy kids clothes.

All clothes are taxed regardless of purpose.

 

[Dj_Jestar]

Tell that to brown who continously says it's to put money in the peoples pockets by reducing their christmas shopping bills...

That's because
a) Big companies will pass on the cut
b) Shock horror, people own shops and small businesses.

 

[dirtydog]

We have a small shop and we won't be passing on the VAT cut, it may seem like we are screwing the customer but take into account these points:

1. Our costs have been increasing all year and we can't raise prices to keep the same profit margin as people would complain and shop elsewhere.

2. The cost of putting new labels on everything would be ridiculous.

3. We can't just take off 2.5% at the till as not all items have VAT added.

4. If we did reduce items by 2.5% we would have a shop full of oddly priced items that would mean running to the bank every hour for more change.

Feel free to snipe at the large companies but small businesses have been hit hard all year, this little bit extra might just keep a few from going down the pan.

I have no problem with that and if it helps companies stay in business or reduce the number of staff they may lay off, it's all good and we all benefit.

 

[Tefal]

You need energy to live...



All clothes are taxed regardless of purpose.

Yes you need energy to live... you don't need chocolate.

You can live of the essentials that are vat free.

childrens cloths aren't taxed, so get used to the "hulk" luck.

 

[Muffin`]

You need energy to live...

Stop being an arse, you know what I mean.

All clothes are taxed regardless of purpose.

I know that, but my point was you get more non-essential purchases (luxuries) which fall under VAT. But the tiniest percentage is the bare minimum purchases which shouldn't. A perfect world would be nice but it's not worth the hassel for some pennies.

 

[Helium_Junkie]

Some great points in here, good to see the business side too.
Seems like the consensus is that the whole thing is a bit of a bust!

 

[dirtydog]

childrens cloths aren't taxed, so get used to the "hulk" luck.

Are you saying adults should wear children's clothes?

 

[Energize]

Stop being an arse, you know what I mean.

No what I'm saying it chocolate is as much as a valid energy source as any other food, it doesn't contain tobacco or alcohol so your effectivley taxing the taste which is stupid and uneconomical considering it's energy to price ratio.

I know that, but my point was you get more non-essential purchases (luxuries) which fall under VAT. But the tiniest percentage is the bare minimum purchases which shouldn't. A perfect world would be nice but it's not worth the hassel for some pennies.

Simply have no tax on clothes under x amount, problem solved.

 

[dirtydog]

Some great points in here, good to see the business side too.
Seems like the consensus is that the whole thing is a bit of a bust!

I get the impression some people HOPE it fails. I hope I am wrong about that.

 

[v0n]

This is all rather simple. If you walk into high street store this morning with a plan to buy £499 laptop for your wife or £499 Miele dish washer to clean up after Xmas guests and the store choose to keep your £12.50 because they couldn't be bothered to re-label their goods EVERYONE, and I mean everyone, should just walk away. I don't care if your name is Dick Poorman or Duncan Ballentine. This about principle. And the principle is lower VAT is for me, as a consumer, not for businesses. And that's all there is to it. If John Lewis can do it, if large chains can do it, there is no reason why any shop, under any circumstances should feel it's fair for them to keep what was to help me, as a consumer.

I don't care about troublesome change, rounding up, put a Blind Society collection tin by the counter to those Welshmen that can't be bothered to carry 73p in their shorts.

On the list of worst offenders this morning, number one is DHL. DHL not only decided not to pass on any VAT cuts, but they also chose today to hike their prices massively across entire range of services hoping no one would notice additional 2.5% they intended to keep. If they did so in 14 days, no one would say a word. But because they did so today, they get title of Scrooge of The Year from me.