Which companies are passing on the VAT cut? Discussion

FoxIII

Asda are reducing the price at the tills (which is causing a few problems for those self-service ones), but are not reducing 3 for 2 offers.

And just got a text from O2. They're reducing their VAT rate. On my tariff, I save £0.52 a month! That's going into my pot

sunflora

bwgames wrote: »

I went to a Shell petrol station on Monday evening. and was charged the OLD VAT rate. The pump price was the same as before, and my receipt clearly said 17.5% VAT.

Isn't that illegal?

If I am correct I think Mr Brown said something about not reducing the vat on petrol (also alchol & tabacco) but he would also not be increasing the price... I think it is basicaaly a tit-4-tat kind of thing...

kitekat

Got 0.09 vat back on my dot.com delivery today.Now what can i spend it on,decisions decisions.

hefogg

I wondered why the prices at Lidl were lower on my till receipt!!

rascal35

I went to my local mcdonalds and there were posters everywhere stating due to vat cut they had to increase their prices! but wait for it, vat cut is measly 2.1% but a cheeseburger went from 79p up to 99p, now if my math serves me right thats somewhere in the region of 15.8% price increase but a huge 1200% marup on the 2.1% vat cut :eek:

be877

Just had a bill from talk talk from 28/11 to 28/12 and they have charged me 17.5% VAT:mad: This is probably right (as the billing period was before the cut) but even so seems odd to charge higher rate after 1/12....any thoughts??

mallettron

UKonline are increasing their prices by 2.1%

In light of the recent reduction in VAT made by the government, we are writing to inform you of our response to the changes which will take effect as of the 1st December 2008.
The prices for our broadband packages have always been quoted to you inclusive of VAT. Passing on the VAT reduction would create a lot of costly and time-intensive administrative work, for both us and you, in terms of overhauling customer billing processes as well as amending direct debits and payment instructions.
After careful consideration of all the options, we've taken the decision to leave subscriptions at the current rate.
The financial saving each customer would have received - equating to approximately 32p a month, is far outweighed by the disruption and additional resource these changes would cause to our customer service and support, as well as to you, the customer, in changing your direct debit or WorldPay instructions.
This means your monthly subscription will remain unchanged. However, in order to ensure that overall amounts remain the same, we have to advise you that in effect, we have increased the price of our service by 2.1% - a change that will take effect from 1 December 2008, to the cessation of this temporary rate.
As per your Terms and Conditions www.ukonline.net/legal/productterms_broadband.php you do have the option to end your contract with us without being held to your minimum term before the 1st January.
Should you have any questions, please contact UK Online Customer Services on 0800 053 2222 or email us at: [EMAIL="customer.services@ukonline.net"]customer.services@ukonline.net[/EMAIL]
Yours sincerely,
UK Online Customer Services


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johnsmiffy

Stv67 wrote: »

I bought some things from TESCO earlier this week (sandwiches, milk, fruit) and I don't think they were any cheaper than last week. No deduction on the receipt either. Massive poster outside advertising the VAT reduction in store. . Seems misleading to say the least, as this represents a price increase.

Remember everybody NOT everything has VAT on it.

Sandwiches, milk and fruit are all zero rated goods - so no VAT is applied on these items. Not misleading at all.

VAT is not applied to most foods, but is applied to items that are seen as 'luxuries' - chocolate, chocolate digestive biscuits, etc. BUT NOT JAFFA CAKES as they are cakes.

Having said that other items that are VATable are necessities rather than 'luxuries', e.g. toilet roll!

Be very cautious if challenging a shop keeper if you think an item should be cheaper - it may not be VATable.

anna_whd

I have a friend who works for a certain chain of hotels - whilst they are not advertising it, if you booked before 1st Dec, for a stay after 1st, they will refund the vat. Do you think this applies for holidays? We booked a holiday last month for a trip in october next year - we have only paid a deposit so far. What do people think?

Ashabumbleb

I don't think this posted before...buuut....

Yesterday I bough a couple of gift experiences from Lastminute.com. It states in the terms and conditions that they are subject to VAT, but I paid the same price as I would have paid last week, so it seems that lastminute.com are not passing on the new VAt rate!