Beating the VAT increase

Primrose

Just a reminder to us all that the 2½ % VAT increase is now little more than two months away. All the following are items VATable, so it’s time to think seriously about future needs, stock up now wherever possible or bring forward domestic maintenance plans.

Fridges, freezers, washing machines, dishwashers, TV’s, furniture, carpeting, curtains & kitchen gadgets,
Computers and all technical gadgets.
Clothes & shoes (apart from childrens wear)
Crisps, Savoury snacks, Chocolates, Sweets & all kinds of confectionery.
Soft drinks
Pet foods
Toiletries, deodorants, toothpaste, cosmetics, moisturing creams, hair shampoos, hair colourants, sun protection products. perfumes
Cleaning products, soaps, dishwasher products, laundry powders & liquids
Toilet rolls and kitchen tissues.

Over the counter medications such as painkillers, cough mixture, cold medications, (virtually everything you buy in the chemists in fact).

Gardening equipment, mowers, tools, compost, weedkillers & fertilisers.

Service providers: builders, carpenters, plumbers, electricians, decorators, car repairs and servicing, etc.

Penelope_Penguin

Asthis isn;t a strictly OS topic, I'll move it to the Cutting Tax board later.

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere (please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]abuse@moneysavingexpert.com[/EMAIL].

esmf73

Thanks Primrose - I'd not thought about essentials like toothpaste! I knew about loo rolls. Will stock up when I next visit costco. Ho Hum!!

chella71

Phew just bought a new settee and didn't think about that, at least for once I've saved on something as was debating whether to wait for the sales so one would probably have nulled the other out and at least I'll have a lovely new settee for the festivities!!

Will stock up on the pet food too as tend to buy the big sacks so would imagine they'll put a couple of quid on that!!

Thank you!
Chella

System

When vat was reduced by 2 1/2 % it made little difference so i do think its paniking about nothing really if you want to avoid the extra then spend less !

Primrose

The reduction in VAT was only for a very short temporary period. This increase to 20% is going to be permanent for a very long time - at least until the national deficit is eliminated, and that's going to be quite a few years. Just think of the overall extra amount in tax you'll be paying during that time - a lot more than you imagine.

Fruball

CHRISSYG wrote: »

When vat was reduced by 2 1/2 % it made little difference so i do think its paniking about nothing really if you want to avoid the extra then spend less !

I agree with you but that is because it was a 'reduction' and we were never going to see that in our own pockets. We saw the strange reduced prices ie £9.76 or whatever instead of £9.99 for a couple of weeks before they just put the prices back up again.

The big companies etc took it all for themselves... However, this time we will be hit with it because companies aren't going to subsidise us

Makes me so mad :mad:

Penelope_Penguin

Primrose wrote: »

The reduction in VAT was only for a very short temporary period. This increase to 20% is going to be permanent for a very long time - at least until the national deficit is eliminated, and that's going to be quite a few years. Just think of the overall extra amount in tax you'll be paying during that time - a lot more than you imagine.

I think the point is that if you don;t but a lot of "stuff" you won;t be so hard hit

It';s a shame that no Government will touch the sacred cow of "low income tax". Increasing income tax would be fairer and more progressive - go on Dave - I dare you to discuss raining Income Tax :T

zygurat789

Penelope_Penguin wrote: »

It';s a shame that no Government will touch the sacred cow of "low income tax". Increasing income tax would be fairer and more progressive - go on Dave - I dare you to discuss raining Income Tax :T

Income tax was raised from 10% to 20% a couple opf years ago costing those on low income a lot of money.

What is required is rates rising from (say) 10% to (possibly) higher than 50%, depending upon the amount of taxable income.

Stuball_2

The personal allowance was also raise so those on low incomes didn't lose anything.

I am not a 50% taxpayer but I don't think it is fair that the more you earn the more of the national debt burden is put on you. Currently people in 50% tax band also lose their personal allowance aswell so the goverment take far more off them than they take home themselves over that level.

Primrose

I'm seriously beginning to wonder if there is such a thing as "Fairness" any more. In one respect it seems "Fair" that higher earners and those with more money should pay more towards helping to clear the national deficit but on the other hand, most higher earners have worked their butts off for many years to get qualifications, move higher up the career ladder so that they can look after themselves and their families, and remain independent in their old age. Why punish them for having the virtues the country badly needs?

Even many older people who have not had high incomes but have lived prudently and saved all their lives to put a reasonable sum of cash by for their old age are now being classified as "Rich". When their next door neighbours who might have earned a similar income but have lived extravagantly all their lives and never saved a penny are described as "the deserving poor", I can quite understand why some people are wondering what "Fairness" is supposed to be about.