Beat the January VAT price hikes

AP

gotneed wrote: »

Just wondering how the VAT rise will effect the contracts I have for my mobile and broadband. Signed up at an agreed monthly price for a year - can it go up?

As mentioned in my previous posts, if you make an advance payment of say £300 upfront in 2009 to make your account go into credit, you will then continue to be charged VAT at 15% until this credit balance run out, as the tax point will be the date when you make the payment in 2009, not the date of the future invoices in 2010. It is the same for mobile and broadband, also landline telephone, subscription TV, etc.

BernardM

VAT is an EU tax. I agree with people who say it is an iniquitous tax, it penalises ordinary men and women. I would like to see it cut or abolished, not increased.

Why is it, that we don't tell all these politicians that they should be charging on income and not on what we purchase.

Rather than charge 90% of a few rich people as you suggested. If you understand that 10% of our population own and control 90% of the real wealth and that demonstrates in a nutshell what the problem is.

We could then charge 70% tax on those who earn £250,000 per year.

That kind of money, would then fund our NHS our Education our Pensions and our Infrastructure. It would provide for housing and our social care benefits.

JasonLVC

No, you are widely off-topic Bernard and you don;t need to be a moderator to keep a thread on track. Go to the DT if you want to talk about horrible MP's snouts, how socialism is wonderful and how greedy fatcats and all their wealth are destroying the world.

This is a money saving thread about how people can save money in view of the impending VAT increase coming in January and the undoubted further increase in May, post election.

Remember the title of this thread is called "Beat the January VAT hike" and is in the Shop but don't drop forum - it's about buying stuff BM, not boring lectures on politics (yawn)....so how about sticking on topic and help forum members save money come January.

BernardM

Not widely off topic to state its so wonderful. Astonished you think its a fair tax and just because a Californian Governor wants it introduced is not much of an argument not to see it abolished.

tenuissent

You gave me some hope with your explanation of the complex VAT rules my Thai daughter-in-law is affected by. Was she or was she not a lawful immigrant at the point where she was obliged to leave the country when her student visa ran out? My solicitor, after assuring me for 2 years that she was not liable to VAT, suddenly apologised and said it had to be charged (another £1000). I protested very politely, he looked into it further, and tells me today that no VAT is chargeable, and I have completely finished paying for this very expensive project. Without your explanation I would have lacked the confidence to approach him about it, so many thanks. From your explanation I can see what a minefield this is, as the firm is a very reputable one and this man is an immigration specialist and an Appeal Judge, yet needed to have a second and third go at teasing out the liability/non-liability here. He has apologised again and we are parting friends.

JasonLVC

tenuissent wrote: »

You gave me some hope with your explanation of the complex VAT rules my Thai daughter-in-law is affected by. Was she or was she not a lawful immigrant at the point where she was obliged to leave the country when her student visa ran out? My solicitor, after assuring me for 2 years that she was not liable to VAT, suddenly apologised and said it had to be charged (another £1000). I protested very politely, he looked into it further, and tells me today that no VAT is chargeable, and I have completely finished paying for this very expensive project. Without your explanation I would have lacked the confidence to approach him about it, so many thanks. From your explanation I can see what a minefield this is, as the firm is a very reputable one and this man is an immigration specialist and an Appeal Judge, yet needed to have a second and third go at teasing out the liability/non-liability here. He has apologised again and we are parting friends.

Excellent news!!!!!, thanks for the update and a Merry Christmas to you, your daughter in law and all.!!!!:beer:

(He might be an immigration lawyer but you needed a VAT lawyer for this one;)) - if you can check out my signature below, you'll see that your good news is my goods news too.

tenuissent

Yes, I have read your signature. The thing is, when one is driven by the need to support one's child (my adult disabled son whose only chance of happiness is having his wife with him), is it the selfish gene forcing its way through all obstacles towards replication; or is it genuine altruism? Anyway, you have nothing to gain by your efforts here, and I hope you have gained a small proportion of happiness, freedom, and peace of mind from offering such supportive advice. Thank you again.

rash.m2k

I think this VAT reduction is a little silly, not once have I stopped to consider that the VAT on something I buy has been reduced.

2.5% is nothing, really in the grand scheme of things, I've bought mobiles phones, laptops, clothing and the usual stuff you've buy throughout the year, all less than £500 each. A reduction of 2.5% VAT was just a psychological thing, they also put up the duty on fuel by 2.5%!

FatAndy

Had to laugh at the poster in the window of Poundland advertising the fact that they wouldn't increasing their prices when VAT rate went back to 17.5%. Don't recall them advertising that they weren't going to reduce prices when the rate dropped to 15%. Strange that.

venividivici

JasonLVC wrote: »

If you pay in installments then the VAT rate at the time of payment will apply. So if you pay 50% in December that'll be at 15% and if you pay 50% in January that'll be at 17.5%.

Contractually, did you agree a fixed price of £5k for the job or was it £4.5k plus VAT as if the latyter, then the builder is within their right to charge you the higher VAT and not be breaching his contract with you. if, however, you shook on £5k all in, then the builder will have to absorb the 2.5% increase within his £5k price.

I have a similar problem with a builder. In July we agreed a contract price inclusive of VAT for an extension. We paid a deposit at the time. The work did not commence until January this year. They are now charging us for the extra VAT which is not insignificant. I phoned HMRC who said they were in their rights to do this but I cant find anything written down about it on their website. I'm not sure the person I spoke to really knew the answer. Where can I get legal advice on this?