% VAT cut?

moneypooh

Robert_Tycelyn wrote: »

I placed an order for an item in September (price quoted was including VAT at 17.5%) and paid a deposit.
The item is due for delivery in January 2009.
Assuming that VAT is going to reduce to 15% before then will I benefit from the reduced VAT or will I have to pay the 17.5% because this was the price shown when I ordered the item?

good question, I'd like to know this too.

however if the price had increased since placing the deposit would we be up for paying the extra?? probably not

mailmannz

andysstuff wrote: »

Cut in actual prices will be somewhere around 2.12%-something valued at £1.00 currently consists of 85.11p plus 14.89p VAT.

Revised cost will be 97.88P

Rounded back up to £1 of course.

You know its only fair

Mailman

vizzo

Don't think such a small cut will have us all rushing out to spend.

Lokolo

I doubt there will be a VAT cut. The media is just hyping it up (wait 10minutes and they will say ha).

http://news.bbc.co.uk/1/hi/uk_politics/7740897.stm <-- Live Text
http://www.hm-treasury.gov.uk/prebud_pbr08_index.htm <-- RSS and Text Updates

I am watching it live above as I am a very sad geeky student.

Lokolo

VAT has been cut.

From December 1st for 13 months.

Beginning to 2010. When recovery has begun.

scottmartin

Robert_Tycelyn wrote: »

I placed an order for an item in September (price quoted was including VAT at 17.5%) and paid a deposit.
The item is due for delivery in January 2009.
Assuming that VAT is going to reduce to 15% before then will I benefit from the reduced VAT or will I have to pay the 17.5% because this was the price shown when I ordered the item?

I want to know this too. I bought a new sofa a few weeks ago and paid a deposit, with the balance to be paid when they phone me to say that they are ready to deliver. Anyone know what will (should) happen legally?

Lokolo

scottmartin wrote: »

I want to know this too. I bought a new sofa a few weeks ago and paid a deposit, with the balance to be paid when they phone me to say that they are ready to deliver. Anyone know what will (should) happen legally?

http://forums.moneysavingexpert.com/showthread.html?t=1310055

twhitehead

I can beat the kitchen and sofa mentioned above. I have paid £22000 for a holiday which starts January 2009. This included VAT at 17.5%. Have I got any chance of getting something back? I had to pay before the holiday under the firms T&C.:eek:.

I suppose I have to get the magnifying glass out to read them again (SLOWLY and CAREFULLY) but if anyone comes up with an answer I would be eternally grateful.

itsnever2lateisit?

scottmartin wrote: »

I want to know this too. I bought a new sofa a few weeks ago and paid a deposit, with the balance to be paid when they phone me to say that they are ready to deliver. Anyone know what will (should) happen legally?

In legalese, it is the Date Tax Point that will determine the rate of VAT payable.

Simply put if you have been invoiced for it already then the VAT rate prevailing at that time is the rate you pay. If the invoice date is 1st December or later then it will be the new rate

itsnever2lateisit?

IFLY wrote: »

swiss69 wrote: »

The Government (Mark my words) will be put VAT back up in about a year but not to 17.5% but to more like 19.6 or even 20%. This will bring us more in line with Europe. I believe Europe has been asking for a vat increase for years.

Sorry for the rant but would love to know if anyones else has a less cynical view!!

If the Conservatives get elected then VAT @ 20% is a near certainty IMHO, remember 1979? VAT up from 8% to 15% in one hit.

But Labour might do it before then, the Bank of England have warned about deflation, unlike inflation a government has more direct influence on deflation, by increasing Duty, Council Tax and VAT. Also, nearer the time when business starts to squeal about the increase in NI the Govt might about turn (like they did over 10% Income tax) and put on VAT instead because it is 'fairer' and 'business friendly'

I for one wont be spending more because Darling has made it clear I have to pay it back, so best to save it up for the day he comes knocking for it