Who is passing on the VAT Rate Cut? A "Name and Shame" Thread

LizzieS_2

Pennywise wrote: »

No, this is Christmas, shops have already bought their stock and paid 17.5% which they can't reclaim if on the FRS. Your argument stands for the future when he buys new stock to sell, but most of the December sales will be stock bought at 17.5% before 1/12/08, so he will lose money if he reduces his prices. Also remember that many local businesses aren't seeing a decrease in their Flat rate at all - i.e. pubs, post offices, convenience stores etc have seen NO reduction in their flat rate, so any reduction in selling price will come straight off their profit, or increase their loss. As already said, don't expect the smallest of local businesses to reduce their prices and don't give them a hard time if they don't. So much for Govt "helping" small business!

A tax expert on the BBC website was asked the very same question about stock having already been purchased at 17.5%. See his answer to question 17. For those on the exemption schemes, see answer to question 2.

http://news.bbc.co.uk/1/hi/talking_point/7748150.stm

The rate cut does not make a major difference to consumers, however there would have been a bigger outcry had he raised VAT instead.

The thread appeared to me, to relate to the major retailers rather than every single retailer. There is no excuse for the major retailers not passing the cut on.

johnnyh_4

Howdy,

Wanted to highlight a situation with regards VAT decrease and retailers which is happening at the moment.

Looked on Comet website Monday for a PC, Hewlett Packard Machine (HP G70 111EM) £469.99

Tuesday, Chancellor announces VAT decrease from 17.5 to 15 percent.

Tuesday or Wednesday, Comet say on website -> Prices now VAT ajusted.

Today, cost of same HP laptop (confirmed by Comet phone assistance) -> £469.99

Monday: Cost of HP Machine £400.00 + £70 VAT

Tuesday: Cost of HP Machine £408.7 + £61.30 VAT

Therefore, Comet would have increased profits from sale, consumer has zero gain.

Thought that decrease in TAX rate was to benefit consumers spending, instead, NO gain at all.

Currys said, that they are able to raise prices anytime and that particular increase may have been in pipeline for months.
Coincidence ?????????

Also this seems a little bit to be "underhanded" at the least, BIG web statement saying "VAT SAVINGS" and "VAT reductions"......

No Chance

Timmne

The chancellor didn't do it for the individual consumer's benefit, he did it to stimulate the economy. If that means making businesses more profitable (or less loss-making) then so be it if we stay in our jobs!

Lifeisbutadream

Timmne wrote: »

The chancellor didn't do it for the individual consumer's benefit, he did it to stimulate the economy. If that means making businesses more profitable (or less loss-making) then so be it if we stay in our jobs!

Exactly - I would rather more people kept their jobs than had a few extra pence in my pocket!

Timmne

As has been said before, I can't believe how greedy and short sighted people are being - it's a total "I'm all right Jack" attitude. You wait until these same people are made redundant and then they'll start complaining about the economy being as flat as a witches t!t.

johnnyh_4

From the chancellors speech

"I therefore propose to cut VAT from 17.5 to 15 per cent until the end of next year.

This VAT reduction will come into effect next Monday on December 1st.
It will continue for 13 months before returning to the present level of 17.5 per cent at the beginning of 2010 by which time we expect the recovery to be underway.

This temporary reduction is the equivalent of the Government giving back some 12 and a half billion pounds to consumers to boost the economy.

It will make goods and services cheaper and, by encouraging spending, will help stimulate growth.

And this is only possible because I have rejected advice to take no action."

Easy Now.

blue_monkey_2

DSG Have announced 30 MIllion in lost profits. So while we are all arguing over saving £10 on a laptop I wonder how long before jobs at DSG go? We saw the main DSG Head Office and Distribution Centre go from this area last year with the loss of thousands of permanent and temporary Xmas jobs. Jobs were more or less guarenteed there at Xmas.

The Chancellor lives on a different planet to the rest of us so it seems. It certainly is not going to make me buy anything extra so how on earth can it encourange spending. No-one has any money. There'll be even less to spend and more benefits to pay if more people lose their jobs.

moppet_217

Amazon are passing the cut on.

You can get the reduced Vat rate now by typing lowervat at the checkout.

Broadback

I do not understand the peeps who claim that VAT is only decreasing by 2.5%, it is decreasing by 33% surely? That is if I purchase an Item at £100 plus VAT it should now cost me £115 instead of £117.50, a saving of £2.50. that is 2.5% of my purchase price, not 2.5% of the VAT, which would only be a saving of £0.43p

Timmne

It's a saving of £2.50 from your VAT or 2.5% off the VAT rate - look at your own scenario!

It's a saving of 2.128% from your gross price.