Ed Balls calls for emergency tax cut

Thrugelmir

Vincent_Buenisedes wrote: »

I would actually abolish all sales taxes and make up the shortfall with increased income tax.

VAT is more effective than income tax. As catches cash circulating in the black economy.

I prefer to have the option of whether I spend my money or not as well.

dori2o

One simple way is to increase personal allowances for those on less than the higher tax rate threshold.

Increase the personal allowance by 5000 from where it is now, taking it to 12475, this would reduce every basic rate taxpayers liability by £1000 per year. This would allow tax credits/universal credits, Housing benefits, etc paid to working families to be reduced therefore saving at least as much money being paid out as the reduction in what is being paid in.

This still puts £83 per month in the ordinary persons pocket which will be spent in shops, increasing retail figures, improving businesses, increasing vat intake to the government. It would also have an effect of keeping wage inflation low.

It would remove millions of people, especially those on pensions from the tax system entirely therefore reducing administration costs.

It would make working more attractive than being on benefits, again reducing the benefit burden as more people find there way into work.

leveller2911

grizzly1911 wrote: »

Well if you own your own business, are VAT registered, you could of course buy your nice shiny 4X4 4 door hard cab and use it as your personal vehicle, whilst also claiming to use it for shifting that rubble too, maybe.;)

Not strictly true ,it depends on how you buy the vehicle, under some circumstances you can't claim the full vat back and also if you have another vehicle you are only allowed to claim a percentage.Theres also rules limiting the VAT refunds with leasing the vehicle too.
How exactly are they saving any money? For instance depreciation will offset most of any gain from a vat refund.

Bullfighter

Really2 wrote: »

The best one I saw was one of the silver bugs they brought silver from jersey and avoid VAT.( I think he said he had 2000oz.)
I then pointed out the max import cost limit, He said he purchased an oz a day

I bought my silver from the channel islands. I was paying £6/oz (inc shipping) and they shipped all coins/bars individually, but at the same time.

I feel really stupid now. I guess I'll just have to sell some on ebay for £30 each and hide my face in shame....

neverdespairgirl

Why would people pay £30 an ounce when the silver price is about £21 per ounce?

neverdespairgirl

Really2 wrote: »

They are, but I dare say in the sink estates not many home economic lessons use them
But I would have a bet 1KG of economy sausage is a fair bit cheaper.

Asda £1.10 per KG_pale_ for sausage

I would run a mile not to eat £1.10 per kg sausages. Yuck. Double yuck.

Lentils are usually about £1.80 per kg, but a kg of lentils is more food than a kg of sausages, because they are dried.

Bullfighter

neverdespairgirl wrote: »

Why would people pay £30 an ounce when the silver price is about £21 per ounce?

Physical silver carries a premium, and people in the UK price in VAT.

http://cgi.ebay.co.uk/Canada-2011-Silver-Maple-1-oz-ounce-Coin-Bullion-Mint-/320713089087?pt=UK_Coins_Bullion_Bars_SM&hash=item4aabfd603f#ht_500wt_1156

http://cgi.ebay.co.uk/1oz-Canada-MAPLE-LEAF-999-silver-2009-UNCIRCULATED-/220794742168?pt=LH_DefaultDomain_0&hash=item3368646598#ht_3249wt_905

chewmylegoff

neverdespairgirl wrote: »

I have a funny feeling, though, that you can't remove or reduce the rate of VAT under EU law, only put it up. I could be wrong, though.

that is wrong. EU law sets the limits between which the VAT rate can be. the lowest that standard rate VAT can be is 15% and the highest it can be is 25%. the member state can set standard rate VAT anywhere between 15-25% and can increase and reduce it as they like (e.g. labour reducing it to 15% in 2009 or whenever it was)

EU law also stipulates that we can have a reduced rate. that can't be any lower than 5% (although not sure if there is any limit on how high it can be - presume it couldn't be more than standard rate but you never know with the EU...)

Finally there is a zero rating, which is, um, zero.

chewmylegoff

neverdespairgirl wrote: »

Why would people pay £30 an ounce when the silver price is about £21 per ounce?

because they watched a video on youtube which told them that it would soon be worth £500/oz and they believed it.

chewmylegoff

Thrugelmir wrote: »

VAT is more effective than income tax. As catches cash circulating in the black economy.

unless of course the bloke you pay cash in hand to do your building work, pays someone else cash in hand to do something else, who then buys some knock off gear from a mate, who then buys a second hand diesel BMW which he runs off used cooking oil.