UK facing VAT rise?

zagfles

grizzly1911 wrote: »

Feed into inflation with perhaps a an 18months lag, but as the inflation figures are a weighted pot the true effects for the subsistence level isn't fully reflected.

The effect is over reflected, because at "subsistence level" a greater proportion of spending is on VAT-free stuff (rent, most food, second hand clothes etc), or low VAT stuff (eg energy bills), compared to the average pot of goods used for the inflation figures.

alinwales

grizzly1911 wrote: »

It might not make it harde rto feed themselves but if they want to smell nice or wipe their bums they pay VAT. If they want some orange juice they pay VAT if they have a headache they pay VAT. If they want the odd chocolate something they pay VAT.

If you look at a families grocery bill a number of non food "necessary" items are VAT rated.

Perhaps we should zero rate more necessary items and bang up the VAT on consumer electronics (not white goods) and media contracts.

paracetamol are a penny earch.
chocolate can be bought for 30p/100g (source: asda smartprice).
You can get everything cheap if needs be.
Plus, economic effects such as oil prices will have far more of an effect on prices than a 'hike' on VAT. That's why people complain when their favourite value item goes up 5p, but people are less bothered when their favourite luxury item goes up 5p.

Fathertedy

vivatifosi wrote: »

Can't provide a link yet as it it doesn't appear to be online as yet.

Sky has just featured a story on its press preview. The Institute for Fiscal Studies has warned that a VAT rise may be needed to cut the deficit. Looks like it will be on the front page of tomorrow's Telegraph (first edition anyway). Potentially rising to 25%. Commentators said that will not go down well in the Treasury.

I hope it does go up again. Last time VAT went up, all us silver investors who bought when VAT was 17.5% saw our silver bullion inside UK boarders go up 2.5% in resale value.

If it goes up another 5% then all our bullion will be able to be sold at around 5% more on the private market. But now is not the time to sell, now is the time to buy

grizzly1911

alinwales wrote: »

paracetamol are a penny earch.
chocolate can be bought for 30p/100g (source: asda smartprice).
You can get everything cheap if needs be.
Plus, economic effects such as oil prices will have far more of an effect on prices than a 'hike' on VAT. That's why people complain when their favourite value item goes up 5p, but people are less bothered when their favourite luxury item goes up 5p.

you chose luxuries, if you can call ASDA smart price chocolate that.

Household essentials such as toilet paper, washing detergents, pet food, shampoo, soap and beauty products are also subject to standard rate VAT.

Shoppers could face VAT on food

The imposition of VAT on groceries is being actively considered by Whitehall officials as a radical means of reducing the national deficit.

http://www.telegraph.co.uk/foodanddrink/foodanddrinknews/7386834/Shoppers-could-face-VAT-on-food.html


A VAT increase would also hit fuel, with the knock effect to all products.

zagfles

grizzly1911 wrote: »

you chose luxuries, if you can call ASDA smart price chocolate that.

Household essentials such as toilet paper, washing detergents, pet food, shampoo, soap and beauty products are also subject to standard rate VAT.

Yes. But a fairly small proportion of a low income household's spending.

Shoppers could face VAT on food

The imposition of VAT on groceries is being actively considered by Whitehall officials as a radical means of reducing the national deficit.

http://www.telegraph.co.uk/foodanddrink/foodanddrinknews/7386834/Shoppers-could-face-VAT-on-food.html

They won't do it. It sounds like one of those scare stories they leak, so if they do increase VAT, or extend its scope to other stuff, people will be be relieved. The oldest trick in the book - threaten to do something really mean, get people ranting about it, then when they do something only slightly mean, it looks like they've compromised and the wind is taken out of the sails of all those who ranted about what they thought they'd do.

A VAT increase would also hit fuel, with the knock effect to all products.

How exactly? How much stuff do you reckon gets delivered by non VAT registered companies? (VAT registered companies can claim back any VAT they pay).

grizzly1911

zagfles wrote: »

Yes. But a fairly small proportion of a low income household's spending.

Depends on the size of your family and the top of work they do

They won't do it. It sounds like one of those scare stories they leak, so if they do increase VAT, or extend its scope to other stuff, people will be be relieved. The oldest trick in the book - threaten to do something really mean, get people ranting about it, then when they do something only slightly mean, it looks like they've compromised and the wind is taken out of the sails of all those who ranted about what they thought they'd do.

No different to any of the BHAGs they strive for. It is an old story but no smoke without fire. i wish they would sort out the VAT on ebooks:(

How exactly? How much stuff do you reckon gets delivered by non VAT registered companies? (VAT registered companies can claim back any VAT they pay).

They may be able to claim it back but it has a horrible way of affecting the price of things we buy - spooky.

A bit like rounding - there's a thought why don't we abolish anything less than silver (not the Joker type) get rid of all that bronze shrapnel from the system - government save production, loads of money saved in counting, sorting, storing, shifting it by retailers, banks, couriers.

robmatic

Fathertedy wrote: »

I hope it does go up again. Last time VAT went up, all us silver investors who bought when VAT was 17.5% saw our silver bullion inside UK boarders go up 2.5% in resale value.

If it goes up another 5% then all our bullion will be able to be sold at around 5% more on the private market. But now is not the time to sell, now is the time to buy

How's that private market working out for you just now? A dealer will pay the ex-VAT price and eBay will extract hefty fees...

Fathertedy

robmatic wrote: »

How's that private market working out for you just now? A dealer will pay the ex-VAT price and eBay will extract hefty fees...

You will find most silver investors are keeping their bullion in very strong hands. We will never sell our bullion. We may spend it when the time comes, but never sell it for fiat currency.

Silver and gold are the money of first and last resort when currencies go into crisis around the world.

Eellogofusciouhipoppokunu

Fathertedy wrote: »

You will find most silver investors are keeping their bullion in very strong hands. We will never sell our bullion. We may spend it when the time comes, but never sell it for fiat currency.

Silver and gold are the money of first and last resort when currencies go into crisis around the world.

Do silver bugs squeeze tennis balls to get those strong hands?

If you're not selling on the peaks and buying on the troughs of what is a very volatile asset class, then you're a mug punter.

ALIBOBSY

As someone who had a background in science when younger, and now is fascinated by new innovations and research I believe the idea that solar power will be the main "on mass" producer of power in the future, particularly in less sunny climes like our own is unlikely to be correct.

I agree silver is likely to climb in price in the new few years (and if I had any spare cash I would be investing myself lol), and the number of electronic items which rely on silver will of course contribute to that. But apart from places like the middle east, southern Europe and states like California I cannot see solar and wind power being useful for mass energy production. For personal use, small scale, absolutely. For me the technology that looks most likely to step into the hole in energy production will be hot fusion generators.

Iter is based on proven science and will be the first prototype power station to determine the viability of large scale nuclear fusion and will be up and running by 2020. If it is successful-and it is strongly believed it will be, there are already plans to build the first "demonstration" plant to open in the 2030's. So within around 30 years we could have large scale energy production from almost limitless fuel, well before the oil runs dry.

There are also other researchers all working on the problem of energy production and even within solar power the panels get more and more efficient so getting higher and higher power returns from the same sized panels.

So will silver rise? Yep I would say so. But don't rely on solar as being the main reason why.

Ali x