Tesco misprice discussion area part 15

MyUserNamesTaken

Constantine wrote:

It is £14:98.

Morning, Constantine...and hello.

ginjim

is the buy an xbox and game and get £20 off offer still on?

306NOTOUT

Yes, checked it this morning :mad:

Constantine

MyUserNamesTaken wrote:

Morning, Constantine...and hello.

Morning, 'Taken. Quiet in here, init?

BigJonnyB

I will be replying to posts made in response to mine later today (a little short of time right now), but thanks to all the support...I will update you all with what we're doing. Tesco's made me so angry yesterday that I was laying in bed thinking, and believe that I may have thought of something that could get them into very serious trouble...but I am not an expert and it depends on how they are doing their refund process.
Here is an analogy:
In a pub, the landlord is not allowed to 'gift' drinks (although this happens, especially in rural freehouses). The taxman will ask whether any drinks are given away - to children living above (i.e. do they get coke from the bar?), and whether drinks given to customers are rung through the till. The reason for this is that tax is payable on every drink - if drinks are gifted to family/friends/customers then the taxman is 'losing' the revenue on it.
Tescos are refunding items in full - I presume as if they are being returned to the store. However, the items actually leave the store essentially as a gift. Do Tescos pay the tax on all these items or has that simply been forgotten along the way? If the items had actually been returned the tax would have been levied when they were resold...
I am not entirely sure how things work in the retail sector but the pub situation is definitely correct. You might all think this is a load of tosh, but Tesco's staff seem so clueless about their own policy that I wonder whether there is the slimmest chance that this has been overlooked?
Thanks again for all the support since yesterday, one thing I will just say is that Tesco Employee expressed suprise that we are all so detailed when explaining our cases, since we know that head office/managers read this thread. To us, the fact that head office will have read about yesterdays situation and have so far failed to contact me to find out more just demonstrates how little they care - even when it comes to such deplorable treatment of a customer with a disability. They have the opportunity to address certain issues here, and be proactive in their approach. Instead the best they have come with is to print of the misprices each day and send them to stores :rolleyes: .
JB

rombomb

Constantine wrote:

Morning, 'Taken. Quiet in here, init?

Everyone instore getting the didilogic 14" TV!

Constantine

BigJonnyB wrote:

Here is an analogy:
In a pub, the landlord is not allowed to 'gift' drinks (although this happens, especially in rural freehouses). The taxman will ask whether any drinks are given away - to children living above (i.e. do they get coke from the bar?), and whether drinks given to customers are rung through the till. The reason for this is that tax is payable on every drink - if drinks are gifted to family/friends/customers then the taxman is 'losing' the revenue on it.
Tescos are refunding items in full - I presume as if they are being returned to the store. However, the items actually leave the store essentially as a gift. Do Tescos pay the tax on all these items or has that simply been forgotten along the way? If the items had actually been returned the tax would have been levied when they were resold...
I am not entirely sure how things work in the retail sector but the pub situation is definitely correct. You might all think this is a load of tosh, but Tesco's staff seem so clueless about their own policy that I wonder whether there is the slimmest chance that this has been overlooked?

I am miles away from being a tax expert, but I do not think the pub analogy is comparable. The "gift" item is still accounted for through Tesco's systems, otherwise it would just go missing and end up as shrink.

I doubt very much if the IR have missed a way of screwing more tax out of Tesco.

I am pretty certain VAT is paid when Tesco purchase an item, not when the customer does. Edit - actually, not sure about that now I re-read it. Anyone know how VAT works?

ginjim

tax is paid when tescos purchases the product then i'm sure tax is paid when the consumer buys the product

rdwarr

The crux of that matter is that, if Tesco R&Rs an item, it still has to pay back the VAT on it. This becomes due at the time of the original purchase and, as the initial refund is a "gesture of goodwill", it does not get written off.
So, if you R&R a £470 TV then Tesco have to pay £70 VAT.

In the case of a second refund on a "Golden" then the tax is reclaimable because Tesco have the goods back.

Ste7ieBoy

Constantine wrote:

I am pretty certain VAT is paid when Tesco purchase an item, not when the customer does. Edit - actually, not sure about that now I re-read it. Anyone know how VAT works?

I used to deal with VAT when I was a contractor. Essentially there are 2 VAT amounts, what they pay for the goods in the first place and then the VAT they charge customers (Known as Input and Output Tax)

Essentially Tesco owe HMCE for the VAT on the goods they pay for from suppliers.
They can then claim this tax back by passing it on to the goods that the customers pay for (i.e. we end up paying the VAT on the item, not Tesco)

When they file the VAT returns to HMCE they deduct the VAT they've collected on sales from what they have already paid out, so the net result should be customers pay the VAT on goods, not Tesco. (Output Tax - Input Tax)

However in RnR situations where they don't claim the VAT from customers for goods they cannot use the VAT to reduce their tax bill, so in essence they end up paying the VAT on the item but HMCE still get what is owed to them.

I don't know if this makes any sense but i tried! :rolleyes:

Essentially I don't think Tesco are in any trouble with HMCE with the refund policy, it just means they have to foot the bill for VAT on refunded items!