Shops quietly take back the cut in Vat

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The issue I'm least surprised at is that I never noticed the VAT cut, nevermind them taking it back, another £12 billion down the drain.

Lifeisbutadream

divadee wrote: »

a company i know hasnt passed the rate cut on as they still have to pay a fixed rate of vat. they pay a flat rate of 6% and dont claim any vat back because of this, so how is a company supposed to lower there rate when it hasnt been lowered?

Flat rates have been lowered so they have the wrong information.

skap7309

TBH all the VAT cut has done is increase my profits by a tiny percentage. I have not worked the cut in and passed it on to my customers and do not intend to. Have my sales dropped? No, they have increased substantially but than will be down to other factors.

Whilst this may sound smug, basically i am preparing for the day that it is upped to 20% to pay back the mess this recession has created. I have got a funny feeling other traders feel the same way aswell.

skap7309

Rochdale_Pioneers wrote: »

As for the ones not passing it on, boycot them.

If it makes you feel better that you will save 21 pence on a Tesco DVD player then feel free. Just remember to leave your angry mob wielding pitchforks and burning torches at home.

Lotus-eater

Fuel duty went up for all businesses claiming back VAT by 2.5% at the same time that VAT was cut. So that's an extra cost for them to start with. When VAT goes back up, then the extra duty is going to stay on, so then it will cost the rest of you an extra 2.5% as well.

Of course it was all half hidden and not many seemed to notice it.

I said this VAT cut was a complete waste of time back when it was announced, who on earth is it supposed to help?

^!£$&

I think we should name and shame those whose havent passed it on at all or did initially and then increased prices
I can think of 3 examples off the top of my head:
Next, Dorothy Perkins, Blockbusters

Sir_Humphrey

JasonLVC wrote: »

A special EU panel met this week to discuss the idea of allowing certain services to be treated at the reduced rate of VAT (5%) rather than the standard rate (15%).

I recall reading that Sarko was quite keen on the idea of reduced 5% VAT for restaurant meals, which just goes to show what a hypocrite he is.

http://www.liberation.fr/economie/0101554886-le-president-pense-que-la-baisse-de-la-tva-doit-etre-importante

«Le President pense que la baisse de la TVA doit être importante» OR 'The president thinks that a reduction in VAT must be significant'.

http://www.guardian.co.uk/business/2009/mar/10/france-vat-cut-on-dining

EU finance ministers today gave the go-ahead for France to slash the cost of restaurant meals via a cut in VAT to 5.5% in a move to boost consumer confidence and spending as the European economy faces its worst slump for 80 years.

Pobby

About as well thought out as the 10 pence tax band.

treliac

Pobby wrote: »

About as well thought out as the 10 pence tax band.

And about par for the course.

Pennywise

Lifeisbutadream wrote: »

Flat rates have been lowered so they have the wrong information.

Not all of them. Convenience stores, post offices, etc. for example, have seen no change at all in their fixed rate. There are many business sectors where the rate only fell by 0.5% or 1.0%.