!!!!!! - Clown to raise the top rate of tax to 45%

mitchaa

Anyway all is to be announced NOW!!!

StevieJ

I really cannot see the benefit of the Vat cut
12.5 billion for something that will hardly be noticed.

tomstickland

needahome wrote: »

the middle classes have done very well out the brown years, its them who should pay to get the country back in order.

How have they done well? I cost the country the minimum and pay loads of tax.

StevieJ

Generali wrote: »

And !!!!!! does it have to do with house prices?

This is the board moderators forgot.

Good job, oh what fun we have.

StevieJ

Anyone know what direct effect the 2.5% Vat reduction will have on RPI?

dopester

neverdespairgirl wrote: »

According to Robert Peston today, the national budget is in deep, deep doo-doo. Forget the extra spending, the tax take is down by a breath-taking amount.

The slump in the City has knocked around £40bn - yes £40bn! - from annual tax revenues.

.....................

And, to be clear, the incremental sums he'll announce he has to borrow over the next couple of years will be colossal - equivalent to at least 8% of GDP, possibly more, or well over £110bn per annum.
You have to go back to at least the 1970's for a time when public borrowing was spiralling up at such an alarming rate.
Such a rise in public borrowing would be unsustainable

Whoa. Exactly. People don't seem able to grasp it. Seem to me we are right on the edge and the financial markets may be repulsed by the prospect of having to fund so much to keep the good times going, without any reforms, without any clear restructuring to cut out wasteful public spending, nor reform of our generous benefits system which is not paying its way by itself via receipts.

There are limits to everything, including the creditworthiness of governments.

dopester

Pennywise wrote: »

The idea of it costing very little to implement is also laughable. The number of man-hours in business administration is simply mind-boggling. I know for a fact that there are many software products, such as online retailers' websites where the price of every product will have to be manually adjusted -

Radio 5 today had a caller, retail business, saying how everything was printed up for Christmas already which now has a spanner thrown in the works with VAT changes, and so many businesses have that system where items are all set up to process at the till via a tag thing... so all needs to be VAT rechanged.... which is much harder for them than some smaller shop who can, although still maybe tiresome work, manually adjust it.

StevieJ

Ole grey hair doing a good job on Osbourne (not difficult though). :rotfl:

Dithering_Dad

I wonder if they will keep the Flat Rate VAT scheme at the same level (13%) or will they drop it by the same 2.5% to 10.5%?

If not, then this will adversely impact small businesses. One wonders if the government thinks anything through or they just make it up as they go along.

Really2

dopester wrote: »

Radio 5 today had a caller, retail business, saying how everything was printed up for Christmas already which now has a spanner thrown in the works with VAT changes, and so many businesses have that system where items are all set up to process at the till via a tag thing... so all needs to be VAT rechanged.... which is much harder for them than some smaller shop who can, although still maybe tiresome work, manually adjust it.

We are fairly lucky we can just set up a discounted vat rate for the moment so should be fairly easy but I dare say their will be a few million vat refunds submited over the next few months.
AT least that justifies a few HMR&C jobs.;)