UK facing VAT rise?

Generali

Zero_Sum wrote: »

and when someone sets fire to your house, no one will come to put it out or arrest those responsible

To put it a more realistic way, no matter how much you hope the money is there to pay for the fire brigade, if the money isn't available to fill the fire truck with diesel then it isn't coming to your house to put the fire out.

The money the Government spends isn't shat out by the 1% tax unicorn, it represents real output (income) that has been appropriated by the Government on threat of imprisonment.

Perhaps it's better to spend the money on stuff that is a high priority, like putting fires out, than lower priorities such as subsidising incomes of people that are perfectly capable of earning a living for themselves.

Road_Hog

MacMickster wrote: »

No VAT is charged on food.

Oh really?

Ever bought a bottle of water, or maybe some other extravagance like sanitary towells.

Both have VAT charged on them.

Zero_Sum

Road_Hog wrote: »

Oh really?

Ever bought a bottle of water, or maybe some other extravagance like sanitary towells.

Both have VAT charged on them.

you eat sanitary towels?

JasonLVC

Zero_Sum wrote: »

Have been saying similar for year. There's far too many things that are non VAT that should be (e.g. cake & biscuits), and many VAT items that probably shouldn't be.

Then there's the things that just don't make sense

Paper books - Zero rated
E-books - 20%

The whole VAT rules need to be re-written imho

When the UK joined the EU VAT system we got am agreement that allowed us to apply a zero rate of VAT on a specific list of items such as food and books. The argument was we join with the EU but don't want VAT to affect the socially vulnerable and thus books and kids clothing were zero rated.

We are not allowed to add anything to that list and if we take anything off the list then we are not allowed to put them back on the list later on.

There is an EU review taking place regard the treatment of e-books at present, the reality is that the zero rate isn't applied becuase it is a book, it is applied becuase it is "printed matter" so to get an ebook onto the list needs the current definition to be widened/re-written with full EU agreement.

Remember also that the zero rate exists only for the UK, Malta and Ireland, everywhere else in the EU, VAT is charged on books and newspapers and so technically it is us in the UK who are out of step and be careful what we wish for as we may see the end of zero rating on books and reduced rating brought in, to bring us in line with the rest of the EU.

Eellogofusciouhipoppokunu

MacMickster wrote: »

No VAT is charged on food.

VAT is payable on grocery items such as toothpaste and cleaning products as well as sweets, drinks and snacks. Based on the average basket of goods, the VAT hike of 250 basis points could cost consumers up to £33 a year more, says mySupermarket.co.uk.

A spokesman said: 'There are some strange discrepancies between the types of foods that qualify for VAT making it hard to predict where the increase will hit shoppers most. By making some smart decisions, consumers can avoid paying VAT on a lot of convenience foods.

'For instance, a gingerbread man decorated with two chocolate eyes is exempt from VAT, but if it contains any more chocolate, standard-rated VAT is charged. Likewise, unshelled salted nuts are exempt, but shelled salted nuts are not.'

Other foods that come under the zero-rated VAT banner, despite being 'convenience foods' include Jaffa cakes, milkshakes, chocolate spread and tortilla or corn chips.

Products where VAT is payable
Wholly or partly chocolate coated biscuits
Gingerbread man decorated with chocolate (unless this amounts to no more than two chocolate eyes!)
Arctic Rolls
Sorbet
Chocolate bar
Nuts or fruits covered in chocolate or yogurt
Flavourings for milk shake
Potato crisps
Roasted or salted nuts without shells

...and the VAT-exempt alternatives
Chocolate chip biscuits
Jaffa cakes
Cream Gateaux
Mousse
Chocolate spread
Toffee apples
Milkshake
Tortilla or corn chips
Roasted or salted nuts supplied in shells e.g. monkey nuts, pistachios

JasonLVC

Eellogofusciouhipoppokunu wrote: »

Other foods that come under the zero-rated VAT banner, despite being 'convenience foods' include Jaffa cakes, milkshakes, chocolate spread and tortilla or corn chips.

The zero rating on food does not extend to 'processed' potato based products hence why crisps are not zero rated but 'corn based' products are! Its why many of our favourite 'crisps' like Frisps and Discos have had the potato starch content reduced/removed and replaced with wheat or other starches and are now called "snacks" instead of "potato crisps or potato based snacks" as it stops them being potato based and thus zero rated.

But they still sell for the same price despite being VAT free now.

and they taske like eating cardboard.:D