Can we discuss the mini budget coming today?

[Peter T]

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.

Not quite. The government has rearranged the different taxes on fuel.

They have reduced the amount that can be reclaimed, the VAT, and increased the amount that cannot be reclaimed, the duty.

So, imagine paying the same total price/litre for fuel but only being able to reclaim 15% instead of 17.5%.

 

[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.)

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 :?:

I am taking into account that my pensions (husband and wife) increase £8 per week, plus £60 lump sum January = £1p.w. so with vat totals £14 per week.
And no tax to worry about in three years time, lovely.

BTW 678 viewings of post in 12 hours and we have all been good boys and girls so we can discuss current affairs without politics.

 

[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.

Not quite. The government has rearranged the different taxes on fuel.

They have reduced the amount that can be reclaimed, the VAT, and increased the amount that cannot be reclaimed, the duty.

So, imagine paying the same total price/litre for fuel but only being able to reclaim 15% instead of 17.5%.

It is nothing to do with the VAT reduction. The hauliers will be paying more because of the 2p increase in Fuel Duty.

Put simple:
VAT rate reduction - no effect on businesses(hauliers) and a positive benefit for the non registered end user

2p Fuel Duty increase - increased cost to hauliers and everyone if passed on to businesses who pass it on to end users

If you check out this link the net effect is calculated as a 0.4p increase in fuel prices to the end user.
http://www.petrolprices.com/blog/fuel-prices-to-rise-as-motorist-hit-with-p-duty-increase-106.html

 

[Digit]

I take it Mark that is 0.4p/ltr?
I live in the Ceredigion, one of the largest counties in Britain, it is also one of the most sparsely populated, this means that such services as the PO, waste collection, meter reading, BT, NHS and the emergency services are all fuel intensive functions, based on the cost per head of population.
Any extra costs will be passed on, the same applies to food deliveries, farming practices, vet's services and even fuel deliveries them selves.
When I was self employed petrol cost was my single largest expense.

Roy.

 

[devonwoody]

Honestly I dont think anyone can really expect fuel tax to reduce because there is the global warming issue attached, also beer and **** always go up, they never go down, also because of health issues.

 

[Mark Hancock]

I take it Mark that is 0.4p/ltr?
I live in the Ceredigion, one of the largest counties in Britain, it is also one of the most sparsely populated, this means that such services as the PO, waste collection, meter reading, BT, NHS and the emergency services are all fuel intensive functions, based on the cost per head of population.
Any extra costs will be passed on, the same applies to food deliveries, farming practices, vet's services and even fuel deliveries them selves.
When I was self employed petrol cost was my single largest expense.

Roy.

Sorry Roy, yes per litre.
I agree with you. I think in these hard economic times any additional costs incurred by companies are likely to be passed on.
Likewise being self employed myself, vehicle expenses are my largest cost.

 

[devonwoody]

I cannot see how a 1.1% fall in GDP is that worrying, after all its only like everyone having an extra three days off work without pay.
365 days/ 10% = 36 days
1% = 3.6 days.
And we get 40% drop in value of shares
loans that total over 100 billion.

So is it a load of fuss about nothing, I used to go fishing more times than that when the fish were about (in Torbay).

Article here

http://news.bbc.co.uk/1/hi/business/7747757.stm

 

[Losos]

Edited to say - wanted to copy & paste something from another site but it didn't work (Have to get used to using 'preview' I guess :lol: )

 

[StevieB]

I cannot see how a 1.1% fall in GDP is that worrying, after all its only like everyone having an extra three days off work without pay.

I am sure that will be of comfort to the 3% of the workforce made unemployed as a result of the current downturn (figure taken from the same BBC article). You also seem to ignore the fact that this is not a one off effect and is only a prediction for next years change. It doesn't take into account the current scale of losses to date and only concentrates on GDP.

If you can keep your head, when all about you are losing theirs, you haven't understood the nature of the crisis.

Steve.

 

[devonwoody]

SteevieB, I understand your reply, its amazing that such a small percentage can have such effect, Its only like a portion of the last ten years growth that is going to be lost.

So if everyone and business did without the 3 days pay and worked it should come right. Work this Christmas instead of having the week off for nothing and the figure could balance?

Just trying to think differently to find another way.

 

[devonwoody]

I didnt know that.

http://news.bbc.co.uk/1/hi/business/7755303.stm