Stores not passing on Vat Increase?

ginger_manx

I was out shopping in town yesterday and noticed a couple of stores with signs up stating they would NOT be passing on Vat Increase,

anyone else noticed this?

freakybacon

V.A.T. rise actually comes in on the 4th January- today. It will be much more noticeable on petrol and diesel initially as this is required for transport for employees and goods. Expect to see prices rise across the board in a few months as transport costs which can no longer be absorbed by haulage companies have to be passed on to the consumer. Expect to see a few more sneaky price rises too as shops use the cover of increased tax to hide price rises. Don't blame the coalition- if Gordon Browns previous government had not been spending like a drunken sailor the country would not be in the mess it is today.

ginger_manx

In Peacocks they had the sign up, I'm guessing they will not increase vat at midnight tonight,

Debenhams were having a Vat FREE day on all goods!

yunyun

freakybacon wrote: »

V.A.T. rise actually comes in on the 4th January- today. It will be much more noticeable on petrol and diesel initially as this is required for transport for employees and goods. Expect to see prices rise across the board in a few months as transport costs which can no longer be absorbed by haulage companies have to be passed on to the consumer. Expect to see a few more sneaky price rises too as shops use the cover of increased tax to hide price rises. Don't blame the coalition- if Gordon Browns previous government had not been spending like a drunken sailor the country would not be in the mess it is today.

Today isn't the 3rd January? :eek:

nat_kate

I think some stores are planning on absorbing the VAT increase. So taking the hit in their profits rather than us. However im no expert so i could be wrong about it.

squiggles

freakybacon wrote: »

V.A.T. rise actually comes in on the 4th January- today. It will be much more noticeable on petrol and diesel initially as this is required for transport for employees and goods. Expect to see prices rise across the board in a few months as transport costs which can no longer be absorbed by haulage companies have to be passed on to the consumer. Expect to see a few more sneaky price rises too as shops use the cover of increased tax to hide price rises. Don't blame the coalition- if Gordon Browns previous government had not been spending like a drunken sailor the country would not be in the mess it is today.

You had me all in a panic typing that, I thaught i was 6 hours late for work.:eek::rotfl:

jenniewb

Not including VAT increase? yes they will! Their overheads will rise: it will cost more to heat buildings, it will cost more to get items to your shop, it will cost more to buy raw materials in many cases, this will all add to the overall cost. I don't think you'll see an obvious price hike but prices will rise above inflation but as many stores have been at this for a while now (see the price hikes on Sainsburys Basics or Tesco Value foods for eg) I doubt we will notice much of a difference, but we will notice the price rise.

KxMx

With the drop, some retailers did it for a few months and then put the prices back up. A few others (M&S, Primark), had the drop for the duration.

Be interesting to see what retailers do with a rise, after the rubbish standard of the sales!

I've spent a fair amount stocking up on the things that will increase most for us, ie cat food pouches and litter, Rescue Remedy etc. Day to Day I expect to see rises of a few pennies as I don't buy many things that are over am few quid. But all those pennies add up!

ginger_manx

As with the decrease and subsequent increase I think the media are blowing it out of proportion. I wouldn't expect it to have much impact day to day. Prices rise every so often and this will include any extra VAT burdens being passed on.

even the so called "big ticket" items such washing machines, TV's etc the original price of say £349 will increase to about £356.5 not a massive increase and most retailers will probably absorb it...

jenniewb

So here is a price increase I saw in Salisbury's today. On food, a non VAT item- coincidence that the price has escalated or are they trying to compensate for the VAT increase due to hit the alcohol and etc tomorrow by charging more for an item which they sell a lot of?

Basics Prawns, were £1.99 now are £2.15 a box.

julie114

Hi
I had some kids clothes in my basket before midnight-forgot to checkout, just gone back and babies pj's were £7.65 each are now £8.25 and boys jacket aged 14 has increased from £35.70 to £37.20 ??
Im puzzled, they are in the sale , I thought kids clothes were exempt from vat anyway. Anyone know what age vat is payable from, I thought the 14year Ted Baker jacket might come under adult sizing but not the pj's