MSE News: Beat the January VAT rise

This is the discussion thread for the following MSE News Story:

"It's worth making large buys – where the hikes are greater – soon to cut costs before the increase from 17.5% to 20% ..."
Read the full story:
Beat the January VAT rise



OfficialStamp.gif

Replies

  • chattychappychattychappy Forumite
    7.3K Posts
    ✭✭✭✭
    "Will all firms increase prices?
    That's up to them. VAT is a tax on companies, not on buyers."


    VAT is a tax on consumers when they buy stuff - albeit collected by companies.


    Hence no VAT on exports. Also companies (assuming they are VAT registered) can reclaim the VAT they have incurred on purchases.
  • antonia1antonia1 Forumite
    596 Posts
    500 Posts
    ✭✭
    How come VAT can increase on fixed-price contracts (such as mobile phone bills)?
    :A If saving money is wrong, I don't want to be right. William Shatner

    CC1 [STRIKE] £9400 [/STRIKE] £9300
    CC2 [STRIKE] £800 [/STRIKE] £750
    OD [STRIKE] £1350 [/STRIKE] £1150
  • alanobrienalanobrien Forumite
    3.3K Posts
    Part of the Furniture 1,000 Posts Combo Breaker Mortgage-free Glee!
    ✭✭✭✭
    VAT is set to rise from 17.5% to 20% on 4 January, meaning we will all pay just over 2% more for many common goods.


    It is technically correct that we will be paying ~2.5% more for our goods but that ~2.5% represents a 14.5% increase in vat :mad:
  • antonia1 wrote: »
    How come VAT can increase on fixed-price contracts (such as mobile phone bills)?

    It's only the ex-VAT price which is fixed. If you read the small print it will say the price is subject to change due to taxes / duty imposed etc.
  • I bought a Thomson holiday in July, paid about £200 at the time, paid another £150 in September and i have to pay the balance (about £900) in April 2011.

    Will they charge the new VAT rate on that final payment? Or is it fixed because we agreed the price in 2010?
  • JurgJurg Forumite
    30 Posts
    I've signed a contract to buy a new car and paid £1000 deposit. The contract states that the price stated is the price to be paid and that the balance is to be paid before the anticipated delivery date (in a few weeks), but the dealer now says it all must be paid in cleared funds before the end of the year otherwise the vat will be charged at the new rate and they'll charge the new year prices (yet unknown).

    Any idea where I stand?
  • jenniewbjenniewb Forumite
    12.8K Posts
    Part of the Furniture 10,000 Posts Combo Breaker I've been Money Tipped!
    ✭✭✭✭✭
    The thing that worries me is that even non vat food prices will go up.

    I think it will go up because things which cost around the food: staffing costs, fuel costs, transport costs, etc etc will all rise, this will have an effect on the price of the food. I also think that stores will want to dilute the overall cost of Vat for the consumer and add a little bit of a cost to everything. Unfair yes, but supermarkets are businesses and they will try to get customers in their doors by reducing the most popular products most of which will have VAT applied to them. Annoying for me as most of what I buy is VAT free.
  • zorberzorber Forumite
    1.1K Posts
    Part of the Furniture 1,000 Posts Combo Breaker
    ✭✭✭
    The best bit is most of the shops have already put their prices up, so when the 4th of January arrives they will all be marketing that they have frozen their prices but the truth is the have been raking in an extra 2.5% on most vatable products through the key christmas trading period.

    Unfortunately the company i work for hasnt been overly clever with the increase as on the shelfs and item costing £1 now cost £1.02 ummmm the customer wont see that now will they!!!!!!
    "Save the cheerleader - Save the world"
  • KxMxKxMx Forumite
    9.6K Posts
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    ✭✭✭✭
    Been stocking up on cat supplies mainly, litter and lots of food. Also finally got round to getting my Rescue Remedy which is 3 for 2 at Boots.
This discussion has been closed.
Latest MSE News and Guides

NS&I to change Premium Bond prize rate

It will rise to 1.40% from June

MSE News

Compers of the MSE Forum:

Show us the prizes you've won recently

Join the MSE Forum discussion