It is, a bit. Assuming you price everything on it's VAT inclusive price, then anything in a shop currently at £100 will go up to £102.13.Oh dear, yes it is going up to 20% - from 17.5%. So it will be another £2.50 for every £100. Unless my maths is completely wrong
VAT rise..anyone worried?
- Thread starter britain
- Start date
You might earn £2400 a year, but some people pay income tax.
17.5% is actually quite a low rate compared to the EU, raising it to 20% brings us more in line with other countries.
I live off benefits. What difference does it make to products pricing?
Truth that, some info in here:
http://www.tmf-vat.com/vat/eu-vat-rates.html
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I think the original point made was that the money that income tax payers are spending is being taxed twice - once through income tax and then through VAT.
Associate
Think my only main prob with it is the fuel thing, hasnt anyone noticed thats its crept up again in the last few months? does no one care about it? seems odd when its this sort of expense people are letting go and therefor effecting all other spending (cant afford to pop out on a window shopping sunday so no impulse buying)? or are the depots raking it in now, hoping we all miss the hike and when VAT goes up they will all shout about how they wont be adding it onto their prices and making them look like gods?
grrrr
grrrr
Soldato
Fuel going up is always annoying, but I didn't notice much when it went down to 15% so doubt I'll notice when it goes to 20%
Not going to affect me in the slightest. An extra £2.50 on £100 really isn't going to dent the bank account.
Remember this: buy cheap, buy twice. If you want to pay less tax, buy something expensive
Remember this: buy cheap, buy twice. If you want to pay less tax, buy something expensive
So? Individuals pay income tax, companies pay corporation tax, what does it have to do with prices of products in the UK? You have to pay income tax no matter how much worth of products you buy, right?
Yeh I think he was just having a moan
I was just clarifying what I thought was said.
17.5% is really low. 20% is perfectly reasonable by European standards.
The UK is a low tax economy by European standards.
http://www.rkgconsulting.com/vat-consulting/eu-vat-rates-at-1-january-2010/
Key word there being European, some states have no sales tax.
http://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States#By_jurisdiction
http://en.wikipedia.org/wiki/Sales_taxes_in_Canada
We're being raped in comparison to that.
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Soldato
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- 30 Jun 2006
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nii.
Soldato
It doesn't worry me at all.
Though there's a few purchases I was planning soon (only a few £K in total) and I'll probably speed them up and do them before the rise. So it won't stop me from buying the items, just encourage me to do it at the current rate rather than waiting.
Though there's a few purchases I was planning soon (only a few £K in total) and I'll probably speed them up and do them before the rise. So it won't stop me from buying the items, just encourage me to do it at the current rate rather than waiting.
My company is on the flat rate VAT scheme and due to the percentage changes in the rates I reckon I'm actually going to have about £40-£50 more income each month.
I'd need to purchase about £2K of VATable items a month to offset that increase, so it looks like I'm actually going to end up better off.
It was similar going down to the 15% rate, but in reverse. I ended up worse off during that period.
I'd need to purchase about £2K of VATable items a month to offset that increase, so it looks like I'm actually going to end up better off.
It was similar going down to the 15% rate, but in reverse. I ended up worse off during that period.
Caporegime
Individuals don't pay VAT. The people adding the value do.
I haven't really thought about it so a 2.5% doesn't really worry me.
But, what does annoy me though, is that if you think about it, you'll really be paying either 43% or 60% tax on every item you buy (before you pay 20% VAT you've already paid 23% or 40% income tax **).
** not an exact tax figure as I can't be bothered to work out the fact you have a tax free allowance etc. But you get the idea.
But, what does annoy me though, is that if you think about it, you'll really be paying either 43% or 60% tax on every item you buy (before you pay 20% VAT you've already paid 23% or 40% income tax **).
** not an exact tax figure as I can't be bothered to work out the fact you have a tax free allowance etc. But you get the idea.