Fuel to go up tonight

Graham_Devon

nicko33 wrote: »

I thought fuel was unaffected by the VAT cut (or rather, they increased duty to offset the VAT decrease), so it "should" be unaffected by VAT returning to 17.5%

Yer, they put duty up by 2p to offset the VAT reduction.

But when VAT goes up, that 2p they slapped on, to offset the VAT reduction, will attract the higher rate of VAT. So you will be charged VAT on the duty they introduced to offset the VAT reduction!

Unless of course they take 2p duty off when VAT goes up.

I'll eat my hat if that happens. And I don't have one, so I'd have to go buy one first.

nicko33

AFAIK, duty does not attract VAT, only the underlying cost of the fuel attracts VAT

Graham_Devon

nicko33 wrote: »

AFAIK, duty does not attract VAT, only the underlying cost of the fuel attracts VAT

VAT is charged on the fuel plus the duty.

So you are taxed on tax.

The underlying cost of a £50 tank of fuel at the moment is about 46p per litre.

Have a look at your VAT receipt the next time you fill up. It will be around £7.60 on a 50 litre fill up. If VAT was charged only on the fuel cost, it would total around £3.40

nicko33

Graham_Devon wrote: »

VAT is charged on the fuel plus the duty.

I stand corrected

nicko33

On top of that, in the last few days I received notification from (Citi) Shell Mastercard that they are reducing the 3% cashback for purchasing Shell fuel to 1% from 1st October 2009

Arcaine

The government is not going to back down on this one given that tax receipts have fallen dramatically, I can see a lot of these types of taxes increasing, I can see VAT going higher than 17.5% as well, probably not all in one hit, but I can see it going to maybe 19% sometime next year as the Government realizes income/corporate tax revenues are not coming back anytime soon and with falling asset values there is also less revenue from capital gains and inheritance tax.

Davesnave

Graham_Devon wrote: »

It's funny you should say that!

Was only sitting in a traffic jam on the M5 the other day for ages, using fuel and going no where. When I eventually got to the hold up, it was speed cameras going up on the hard shoulder, so two lanes had been closed off leaving one lane. Sure, it was night time, around 10pm. But, it's a bank holiday, carvans and travellers galore.

We were in that one. Some of us switched off our engines! I even got out and had a long chat with DW, who was sitting in the car behind me.

Some of us know how to economise.... :rotfl:

Graham_Devon

Davesnave wrote: »

We were in that one. Some of us switched off our engines! I even got out and had a long chat with DW, who was sitting in the car behind me.

Some of us know how to economise.... :rotfl:

I was doing that crawling thing! Stop start, stop start, stop, start every second!

System

I need to get myself one of those trendy new diesel Fiestas that do nearly 70mpg

Graham_Devon

Who put that stupid spam button there!? Never seen that before and just magically reported my own thread as spam.

It says if enough people do the same, it will get deleted!

Wonder how many it takes