% VAT cut?

Renfro

Kez100 wrote: »

I have been wondering about flat raters. That wasn't around when we had the last change - in 1991 (ish) .

I've just looked up the new VAT guidelines for flat-raters on the HMRC web site today.

Basically they seem to have split the difference between the two options that I enquired about in my original post.

The amount of VAT that you get to keep is reduced, but so is the amount that you pay. At least I think that is the case. I can't be absolutely sure because they've not listed Trade Classification numbers in their table, so I'm basing my comment on the new rates assigned to the category that appears to be the most appropriate for my business.

HMRC has drawn up a new table of rates (Annex E) and in my case the amount that I can keep has dropped from 1.5% (from 7.5% to 6%) and the amount that I pay has dropped 1% (from 10% to 9%). So I take the bigger loss.

I might have known the Treasury would make us take a hit. Not only that, but my VAT calculations used to be dead simple because I just used to pay a straight 10%.

Looking through the masses of documentation that HMRC has had to provide in order to deal with all the eventualities that these VAT changes may throw up, it seems to me to be a monumental waste of time and effort for something that is not going to make any noticeable difference.

I think that the money could have been much better spent elsewhere.

moonrakerz

IFLY wrote: »

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 - they cut the standard rate of Income Tax from 33 to 30% and the higher rate from 83% to 60% at the same time. At least you could decide which Tax your money went on !

[Deleted User]

twhitehead wrote: »

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?

Simply, no.

Think of it like this. I have to pay for my Mars bar before I eat it :eek:

If I buy it on Sunday at 17.5% VAT, but I'm not planning to eat it until Tuesday (after the VAT cut), can I go whining to Tescos and demand a partial refund?

[Deleted User]

itsnever2lateisit? wrote: »

IFLY wrote: »

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

Indeed, it's like an enforced loan.



You WILL borrow from the Government... WHETHER YOU LIKE IT OR NOT!!!

Robert_Tycelyn

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?

Further to my earlier message I have asked for , and read the small print on accompanying my order.
"Prices will not be varied by this company, save in circumstances where levies placed by Government are increased for example VAT. Likewise, any savings accruing by such action shall be passed onto the buyer."

This is excellent news for me - so I would urge anyone in a similar situation to check out the details of their own purchases/orders.
I hope this helps.

stphnstevey

Renfro wrote: »

I've just looked up the new VAT guidelines for flat-raters on the HMRC web site today.

Basically they seem to have split the difference between the two options that I enquired about in my original post.

The amount of VAT that you get to keep is reduced, but so is the amount that you pay. At least I think that is the case. I can't be absolutely sure because they've not listed Trade Classification numbers in their table, so I'm basing my comment on the new rates assigned to the category that appears to be the most appropriate for my business.

HMRC has drawn up a new table of rates (Annex E) and in my case the amount that I can keep has dropped from 1.5% (from 7.5% to 6%) and the amount that I pay has dropped 1% (from 10% to 9%). So I take the bigger loss.

I might have known the Treasury would make us take a hit. Not only that, but my VAT calculations used to be dead simple because I just used to pay a straight 10%.

Looking through the masses of documentation that HMRC has had to provide in order to deal with all the eventualities that these VAT changes may throw up, it seems to me to be a monumental waste of time and effort for something that is not going to make any noticeable difference.

I think that the money could have been much better spent elsewhere.

Good point about % lost and keep

I too lost 1.5% of what I used to retain (8.5% to 7%) and pay 1% less (9% to 8%) .

Renfro

stphnstevey wrote: »

Good point about % lost and keep

Sorry to resurrect an old thread, but not only were we shafted on the way down (having to take a greater hit than HMRC as a percentage of the the reduction) but now we are being shafted on the way back up too.

Instead of my flat rate returning to 10% (as it was previously), it's gone up to 10.5%.

Apparently this whole VAT fiasco was meant to help small businesses, but all it's done is mess me (and everyone else) about. The only beneficiary is HMRC who have used the VAT rate changes as two separate opportunities to sneakily increase the amount of tax that we have to pay.