Charged 17.5% VAT instead of 15%

hnisc

I went and got my photos taken for a passport renewal and used a local Photo-Me booth.

After paying the standard £4 and getting the photo taken and then developed I noticed that on the printout it stated that the £4 was made up of 17.5% VAT i.e. 60p.

I'm just wondering if this is allowed and is it illegal? I know the sums are small but I thought it should be brought up.

durham_girl

It should have been changed to 15% AFAIK, I have no clue who you would contact about it though

superscaper

hnisc wrote: »

I went and got my photos taken for a passport renewal and used a local Photo-Me booth.

After paying the standard £4 and getting the photo taken and then developed I noticed that on the printout it stated that the £4 was made up of 17.5% VAT i.e. 60p.

I'm just wondering if this is allowed and is it illegal? I know the sums are small but I thought it should be brought up.

Is it broken down? There are many places that charge 15% VAT but still have "17.5%" listed on receipts simply because their systems can't easily cope with being changed or they haven't bothered.

If you have been overcharged it may still be worth enquiring even if it's only 9p. They should not be charging VAT at 17.5.

chedder789

You could possibly contact the company owning the booth, its probably on the side of the booth, the actual store probably would not be able to help, as they don't own it. Let us know how you get on!

System

companys dont have to pass on the VAT reduction .

superscaper

CHRISSYG wrote: »

companys dont have to pass on the VAT reduction .

They can charge what they want for their products and services but it CANNOT be composed of a VAT larger than what VAT actually is. Tantamount to tax fraud. They could increase their base cost to compensate for the 2.1% reduction thereby not passing on any reduction to the customer but they can't still actually charge 17.5% VAT.

seagull09

I found this on a news article and similar on a solicitor's website (http://www.bondpearce.com/Publications/427):

"In November, Alistair Darling, the Chancellor, cut the standard rate of VAT from 17.5 per cent to 15 per cent until the end of this year to help boost spending. Ministers have urged shops to pass it on to consumers, but it is not compulsory to do so."

Which ties in with what I've read elsewhere, it's not mandatory but advised. Unless something's changed more recently?

superscaper

seagull09 wrote: »

I found this on a news article and similar on a solicitor's website (http://www.bondpearce.com/Publications/427):

"In November, Alistair Darling, the Chancellor, cut the standard rate of VAT from 17.5 per cent to 15 per cent until the end of this year to help boost spending. Ministers have urged shops to pass it on to consumers, but it is not compulsory to do so."

Which ties in with what I've read elsewhere, it's not mandatory but advised. Unless something's changed more recently?

Is that passing on the saving though, as far as I can tell they still can't actually quote for "17.5% VAT". But they can still charge the same net price, just alter the base price to compensate instead of reducing the net price by 2.1%. Even in that article there's nothing there that gives shops permission to charge 17.5% VAT to consumers.

bap98189

It's most likely just some old software in the machine. Sounds like they haven't bothered to update all their machines after the VAT reduction. I'm sure they will be accounting for it at 15% VAT, the problem will just be in the receipt printing software.

By all means write to the company, but bear in mind that they will not reduce the overall price if they fix the issue. £4 is a nice round number, they don't want their machines having to dish out change all the time because they are charging £3.92.

KimYeovil

It has been £4 for years. It is not worth the time and trouble of sending out engineers twice over a period of twelve months to reprogramme the receipts from £3.xx + 17.5% VAT = £4.00 to £3.xx + 15% VAT = £4.00 and back again.

Why put the price UP to £4.50 for everyone just because some miser moans about an incorrectly printed receipt means he can't claim the cost back on expenses? The company will be paying 15% VAT this year on a higher base cost.

Meepster

And TBQH is it really worth investigating further for 8p? It will cost you more in phone charges, or for a stamp, than you would actually get back...