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

Sterlingtimes

What happens in the following situations?

[1] A car insurance quotation with credit agreement provided last week at the old rate of VAT? Is the insurance company bound amend the rate?

[2] An invoice for burglar alarm maintenance provided last week for work where the contract starts on 15 December.

Timmne

1] wouldn't be applicable for VAT
2] would have to amend the VAT code I'm sure - neither the supply nor the payment have happened at this point so they'd have to revise the quote.

I think...

Sterlingtimes

Timmne wrote: »

1] wouldn't be applicable for VAT
2] would have to amend the VAT code I'm sure - neither the supply nor the payment have happened at this point so they'd have to revise the quote.

I think...

Thank you.

I had not realised that the car insurance was zero rated.

blue_monkey_2

The posted has said he has been invoiced for a supply to start, not that he had received a quote.

If your invoice is dated for last week then this is the amount the company will be paying HMRC so this is the amount you will pay/put through your books. However, if you have recieved a quote and not an invoice and if the invoice you get is dated 1st December onwards then you will pay 15%. Unless you can get a credit note raised and the invoice re-issued then you'll pay the greater amount but I doubt the company will do that else everyone will be asking the same thing.

The key thing is when the Invoice date is as this is the amount that will be paid/reclaimed from HMRC. If you have a quote with the VAT noted then then this will change if your INVOICE is dated 1st December onwards.

blue_monkey_2

Money_Spinner wrote: »

I know what I am doing - I have run the business for 16 years - my prices have been reduced to reflect the new VAT rate but till monday I will make up the difference - My vat receipts will still have 17.5% on them till monday then they will be changed. This is in fact what all the major retailers who have already reduced the rates are doing. The governement will get all their share of what they are owed.

The post was not for advertising - it was to show that it can be done if people want to and quickly. So i do not think I have made a boo -boo In fact my customers are very pleased about it !!!!

That is not what you have said in your first post. You said you had adjusted the tills within 48 hours - which must mean people are receiving the wrong VAT receipts.

Sterlingtimes

blue_monkey wrote: »

The key thing is when the Invoice date is as this is the amount that will be paid/reclaimed from HMRC. If you have a quote with the VAT noted then then this will change if your INVOICE is dated 1st December onwards.

Your posting is precise and does help me. Thank you for your kind response.

Kez100

I am passing it on.

mrkbrrws

Sterlingtimes wrote: »

Thank you.

I had not realised that the car insurance was zero rated.

It's not, but it is exempt (like all insurance). There is an Insurance Premium Tax though at (I think) 5%.

dfh4np

Was looking at a new TV costing £1300 last week, checked again today and it clearly says "This price has been lowered due to the reduction in VAT".

Same price as last week @£1300.

Must be the volatile markets and the price of sugar in their canteen coupled with a light shower in Mongolia that has miraculously forced the price up to the same.

Yet another sector of so called established and beyond reproach blue chip companies in our country that when put on the spot are shown up to be cowboys.

Let them eat cake.

vivatifosi

dfh4np wrote: »

Yet another sector of so called established and beyond reproach blue chip companies in our country that when put on the spot are shown up to be cowboys.

Let them eat cake.

TVs and electrical goods have already been identified as items for which retailers will have to pay a hefty increase in the coming months as the likes of Sony increase their wholesale prices because of falls in the £ against global currencies. I agree that there should be greater transparency from John Lewis, but they may be trying to smooth prices due to future increases.

I'd much rather they kept the 2.5% VAT than pass on the 10-20-30% or whatever increase that they will experience in the new year and which, per the following article, many retailers are looking to swallow, despite the effect on their margins:

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/3496632/Sony-to-raise-prices-by-up-to-a-third-to-offset-tumbling-value-of-the-pound.html