Can we discuss the mini budget coming today?

[devonwoody]

OK, I calculate that I have got another £14 per week to spend (if I get £250 vat less to pay on £10,000.)

Giving that to another 5 miilion pensioners as well means there should be less unemployment which is what the bulk of us want and need.

 

[Mark Hancock]

OK, I calculate that I have got another £14 per week to spend (if I get £250 vat less to pay on £10,000.)

I think I'm missing something here but if you mean you are £250 better off in a year isn't that £4.80 per week better off :?:

 

[Peter T]

I could be totally wrong on this Peter, I admit that I don't know, but assuming that the VAT drop exactly balances the increase fuel duty at the pump, I reason it this way.
When Shell deliver to my local filling station they will burn diesel fuel to do it, they will, I imagine, have to pay the extra fuel duty, but they reclaim the VAT!
That equates to a rise at the pumps!
And surely this applies to any business that reclaims VAT?
Am I right?

Roy.

I was going to mention this but DW asked for some peace

The VAT that the hauliers can reclaim will fall from 17.5% to 15% of the same price, therefore they will effectively be paying more, therefore they will pass on this increase to their customers, therefore the price at the pump may rise??

But worse than this, everything is delivered by hauliers these days so the price of a lot of things is likely to increase, particularly food, since there will be no benefit from the VAT reduction on food prices.

 

[p111dom]

But vat isn't payable on food anyway.

 

[p111dom]

Ops perhaps that's what you were saying. It depends how you read it.

 

[Digit]

VAT is payable in lump sums Dom, till payment day it's yours to use as you wish, any reduction must therefore worsen any cash flow problems.

Roy.

 

[Mark Hancock]

The VAT that the hauliers can reclaim will fall from 17.5% to 15% of the same price, therefore they will effectively be paying more, therefore they will pass on this increase to their customers, therefore the price at the pump may rise??

Yes hauliers will now only claim back 15% but that is because they only paid 15% in the first place. You can't claim back more VAT than you have paid. VAT does not affect the financial position (profit or loss) of a company.

 

[p111dom]

VAT is payable in lump sums Dom, till payment day it's yours to use as you wish, any reduction must therefore worsen any cash flow problems.

Roy.

That's a good point too but I don't know how often it has to be paid not being self employed.

 

[Digit]

Used to be every three months I think.

Roy.

 

[Mark Hancock]

VAT is payable in lump sums Dom, till payment day it's yours to use as you wish, any reduction must therefore worsen any cash flow problems.

VAT is never yours. Many companies become unstuck by using VAT as part of their cashflow. You hold it on behalf of the Government, that is if your sales exceed your purchases. If it is the other way you are owed money in the form of a VAT refund which you have to wait for until the VAT period is up which may be 3 months.

That's a good point too but I don't know how often it has to be paid not being self employed.

Usually quarterly but it can be monthly.

 

[Digit]

VAT is never yours.

I understand that Mark, but I haven't personally come across a company that separates VAT from normal income prior to payment day.

Roy.

 

[Mark Hancock]

VAT is never yours.

I understand that Mark, but I haven't personally come across a company that separates VAT from normal income prior to payment day.

Roy.

I know what you mean Roy That why I said about companies becoming unstuck with using VAT in their cashflow. They come to rely upon it and can find themselves short when it comes to paying the VAT man.

 

[Digit]

I can imagine. Pay it back, it's our money that you've used so we want interest on it, then a fine to be paid on the total of VAT plus interest!
Ouch! That hurts.

Roy.

 

[RogerS]

It's another pointless act by a pathetic government that will have zero affect, just like the billions that have been handed to the pockets of the bankers in the bailouts. Why decrease it if you are only going to increase it later. Might as well just leave it alone and concentrate on encouraging small/medium business and figure a way of stopping the pound becoming as valuable as the Zimbabwe Dollar.

That VAT decrease will mean diddly squat, if the pound keeps dropping, all the stuff we import will be more expensive and the small drop in VAT will make no difference.

Hear hear....spend £100 and save the price of a pint of beer. The only thing that will get the economy moving is to nationalise all the banks and start lending money and generating credit and cash flow. That's what is starving the economy.

 

[Rich]

I can imagine. Pay it back, it's our money that you've used so we want interest on it, then a fine to be paid on the total of VAT plus interest!
Ouch! That hurts.

Roy.

That's what happens when you spend what you don't have, we'll learn one day I suppose, :?
Then again folks look and see the government doing the same and think.....if it's goodenough for them..........

Regards,

Rich.

 

[Digit]

Despite thinking very little of Gord history would seem to be on his side.
America got the economies of the world moving during the Depression by spending vast amounts of Federal money. Problem was much of it went to finance WW2!

Roy.

 

[Rich]

But he has done NOTHING to increase my spending power Roy, if anything I have less to play with, Blimey, I won't be able to have a pint or a *** soon, but those drawing their giro's will, we know who they will vote for, don't we. :wink:

Regards,

Rich.

 

[Digit]

At the moment Rich the 'recession' is producing some of the best bargains I've ever seen!
Some of the local price reductions make 2.5% VAT reduction look silly.

Roy.

 

[Rich]

I'll agree with that Roy, we are going to wait until after xmas to buy anything bigger than say, £50.00, but that only compounds the current dilemma, so it's good for me but not the economy. :?

Rich.

 

[Digit]

I think that is what many will do Rich.

Roy.