Businesses passing on VAT reduction

sharpe106

You are paying what you agreed, the company are just making more that is all.

jo4012

Does that seem fair when other companies are not charging the old vat and changing to 5% on the remainder of the monies 

comeandgo

jo4012 said:

jo4012 said:

So a bit of advice ... booked Christmas 2020 in April 2020 and paid 50% deposit of £820 ... so 20% vat on that not problem need to pay remaining monies in November 2020.. so I contacted Hotel who are staying that the price is still the same and they are keeping the extra monies ... as they had been fully paying staff and refurbished the hotel. Can they do this as agreed holiday is 1640 including vat.

Yes, you will still be paying 1640 including vat.

Can I ask why ... as surely we are paying more for the holiday with the vat reduction where other companies are refunding it 

Your holiday is costing you exactly the same as you agreed.  The hotel, who have endured 4 months of non trading will have a small bit of extra profit.  Some hotels may decide to reduce their rates.  If you are able you could cancel this booking and go with one of the other ones.

Thrugelmir

jo4012 said:

Does that seem fair when other companies are not charging the old vat and changing to 5% on the remainder of the monies 

Without the money the hotel may possibly not survive. The "crisis" has barely begun. 

stevem99999

bradders1983 said:

Indeed, this VAT reduction has not been instituted for the benefit of the consumer as they are unlikely to see a huge benefit.

Wrong I'm afraid. Direct from the Treasury briefing on the Chancellor's support package: "The rate of VAT applied on most tourism and hospitality-related activities will also be cut from 20% to 5%. This will save households around £160 per year on average"
Key word - households.

bradders1983

stevem99999 said:

bradders1983 said:

Indeed, this VAT reduction has not been instituted for the benefit of the consumer as they are unlikely to see a huge benefit.

Wrong I'm afraid. Direct from the Treasury briefing on the Chancellor's support package: "The rate of VAT applied on most tourism and hospitality-related activities will also be cut from 20% to 5%. This will save households around £160 per year on average"
Key word - households.

I refer you to the answer I already gave to this on Page 2.

People are living in Cloud Cuckoo Land if they think prices will come down by 12.5%

[Deleted User]

Just wondering how many people ever give a thought to the VAT portion?   If I see something at a price I like I buy.  Have never wondered how much of it was going in VAT.  I suppose if it was sold differently, minus VAT, then it would be different?   But it isn't in the UK at least.   Shops put their prices up and down all the time.   By the same token those who booked holidays ahead must have felt it was worth the money in first place so why worry now?   The holiday business is struggling enough.

mattyprice4004

jo4012 said:

Does that seem fair when other companies are not charging the old vat and changing to 5% on the remainder of the monies 

Life isn't fair - it was made clear that the business can choose to pass on the saving or not. 
If you don't like it, tough - it's not your choice. 

mattyprice4004

Tedber said:

Just wondering how many people ever give a thought to the VAT portion?   If I see something at a price I like I buy.  Have never wondered how much of it was going in VAT.  I suppose if it was sold differently, minus VAT, then it would be different?   But it isn't in the UK at least.   Shops put their prices up and down all the time.   By the same token those who booked holidays ahead must have felt it was worth the money in first place so why worry now?   The holiday business is struggling enough.

Because this country is full of people only out for themselves, and would rob their own granny of £100 if they didn't think she'd notice. 

'Pull up the ladder, I'm alright Jack' is the mentality that seems to prevail these days. 

sharpe106

I am not expecting it to be passed on either, but the VAT was never the companies money (unless you are Amazon). If they want to raise the prices to cover the loss of business over the shutdown then fine.

 

But to me for them to keep it is still the moral equivalent of me giving you £20 to pass on to somebody else, them dying before you can give it to them and you keeping the £20. It was never yours to begin with.