Prediction 1

1984ReturnsForReal_2

VAT up in April


(& if anyone is watching BBC News 24 you will know why)

tomterm8

Er, and there was I thinking, VAT up now, and again at april.

Have they leaked the entire budget yet?

1984ReturnsForReal_2

tomterm8 wrote: »

Er, and there was I thinking, VAT up now, and again at april.

Have they leaked the entire budget yet?

They have their spokespeople out today.

Maybe it will be done in 2 phases.

But in terms of administration, can they really deal with an immediate increase?

I would of thought if they were going to put it up ASAP, October would make more sense....

Pete111

Would have though businesses need a little lead time to adjust to the new rate? Then again, it's usual that booze and fags go up 'from midnight' so maybe it's not that hard to change these things .

Either way I expect 20% VAT in the not too distant future.

StevieJ

Vat up to 19%?

Mrs_Bones

I was working in a shop when VAT went up to 17.5% and that seemed to changed overnight, can't remember how much warning there was for it going up but this was in the days of still pricing goods up with by hand and a pricing gun. One day it was 15% next all hands to deck peeling off labels and changeing all the prices, if there was any warning it didn't help us on the shop floor.
Now it should be so much easier, with the electronic tills and computer pricing. I don't think they would need to give that much warning.

1984ReturnsForReal_2

Mrs_Bones wrote: »

I was working in a shop when VAT went up to 17.5% and that seemed to changed overnight, can't remember how much warning there was for it going up but this was in the days of still pricing goods up with by hand and a pricing gun. One day it was 15% next all hands to deck peeling off labels and changeing all the prices, if there was any warning it didn't help us on the shop floor.
Now it should be so much easier, with the electronic tills and computer pricing. I don't think they would need to give that much warning.

The prices would change like that even now with the shelf labels no matter how much warning companies were given.

1 day 17.5% next day 20% (or more like one day 17.5%, next day 18.5%, 5th April 2011 20% :eek:)

John_Pierpoint

It needs at least a weekend.

I remember doing it for a multinational here in the UK in the 1970's

It is only where money turns into cash with unregistered punters that its a major problem.

Any one work for "Customs" - they have a major job to do with imports - in my experience they are "tipped the wink" in situations like this.

1984ReturnsForReal_2

John_Pierpoint wrote: »

Any one work for "Customs" - they have a major job to do with imports - in my experience they are "tipped the wink" in situations like this.

I think the Conservative MP on earlier was winking.....

In fact, he may well of posted a notice...

JasonLVC

Going all the way back to 1974, whenever VAT has changed (increased/decreased), the average delay between announcement and taking effective is around 10 days.

(Darlings' reduction to 15% was announced in the PBR 24 November 2008 and was effective from 01 December 2008, just 6 days).

If VAT goes up in the budget today, I'd expect to see it being effective from 01 July 2010, in keeping with the historical trend.

But who knows, this coalition government keep serving curve balls on the economy, education and general policy so they might break the trend oncemore and introducde the increase in phases or from January?

1984ReturnsForReal_2

JasonLVC wrote: »

Going all the way back to 1974, whenever VAT has changed (increased/decreased), the average delay between announcement and taking effective is around 10 days.

(Darlings' reduction to 15% was announced in the PBR 24 November 2008 and was effective from 01 December 2008, just 6 days).

If VAT goes up in the budget today, I'd expect to see it being effective from 01 July 2010, in keeping with the historical trend.

But who knows, this coalition government keep serving curve balls on the economy, education and general policy so they might break the trend oncemore and introducde the increase in phases or from January?

The Con MP was saying a VAT rise after Christmas, he didn't say whether there would be 2 rises or one....