Stand by

[devonwoody]

An item today that costs £99.99 ( a typical price having the 99p ).
Tomorrow its price with vat should be approx.£116.99, I reckon it will become £119.99.

So for younger members who may not recall the inflation of the 1970's ,STAND BY. :twisted:

 

[OLD]

This is confusing i had it worked out as 99.99 inc vat became on the 4th of jan 102.49.

 

[devonwoody]

Whoops.

I put the vat on twice.

So what do you reckon, £104.99 or £109.99?

(I estimate the cost is around £85 before any vat)

 

[RogerS]

Depends on the item. And the retailer.

Bird food ...pre-Christmas bag of peanuts £6.99 - now £9.99. Large jumbo size bag £24.99 - now £37.99. Now that's inflation.

 

[Peter T]

Item cost, inc. 17.5% VAT - £99.99
Item cost ex. VAT - £85.10

Therefore item cost inc. 20% VAT - £102.12

Happy New Year,

 

[cambournepete]

Depends on the item. And the retailer.

Bird food ...pre-Christmas bag of peanuts £6.99 - now £9.99. Large jumbo size bag £24.99 - now £37.99. Now that's inflation.

No - that's a rip-off!

 

[woodbloke]

I think to be honest, the rise in VAT is just going to be absorbed and we won't notice it for small items. Big ticket stuff might be a little more painful - Rob

 

[Walter Hall]

Well to be honest I didn't notice a great change to my lifestyle when it was reduced for a few months and I don't expect it to impact in any significant way when it is increased. Anyway there is no point complaining about it, tax is one of life's inevitabilities and there is nothing to be gained by fretting about it other than hastening your path to that other great inevitability.

 

[Max Power]

Is an increase of 2.5% going to prevent me buying anything :? NO

 

[matt]

Think you'll find some have already increased prices on some products discreetly... The same may roll out the "Still at Pre-VAT Prices!" banner... Those with price matching will have to wait for the high st to respond else spend a lot of time matching prices in the short-term. I think the market will make this more of a campaign than significant/sudden price rises in many instances.

 

[tisdai]

Makes no difference what we say or do, they will just keep on doing it just like they allways have done, Rip customers off. If prices do shoot through the roof i will be buying second hand to avoid the VAT and the gold digging companies. :evil:

Cheers

Dave

 

[dickm]

For oldies like me who remember the switch to decimal coinage, this vat thing has lots of parallels. When the coinage changed, I suspect that it was a major factor in price inflation, because folk couldn't quickly do the conversion in their heads from old shillings and pence to compare the new prices in "pee". Much the same with the new vat rate - it's not a "2.5% increase", it's an increase from 17.5% to 20%. So how do you work out quickly in your head how much of a price increase that should produce?

Or is it just me??????? :?

 

[Walter Hall]

So how do you work out quickly in your head how much of a price increase that should produce?

It is a 2.13% increase so just over two pence in the £ (2.1277% if you want to be pedantic)

So say something is £240 inc VAT now it would be about £244.80 using the 2p in the pound formula or £245.10 working it out exactly. Or bog all difference if you ask me. An extra fiver is not going to put me off spending that amount on something I want or need any more that knocking a fiver off would influence me to buy if it was not what I wanted at the price.

 

[Tom K]

So how do you work out quickly in your head how much of a price increase that should produce?

It is a 2.13% increase so just over two pence in the £ (2.1277% if you want to be pedantic)

How did you arrive at those figures? I thought it had gone from 17½% to 20%

 

[misterfish]

Bird food ...pre-Christmas bag of peanuts £6.99 - now £9.99. Large jumbo size bag £24.99 - now £37.99. Now that's inflation.

My in-laws' business is wholesale animal feed, bedding etc and includes bird feed. They were complaining about the huge rise in the prices they have recently had to pay for peanuts. However, this has not applied to bird seed.

Misterfish

 

[devonwoody]

I purchase fishfood in a large quantity sack (made in Germany) and the price of that was about 60% higher this year.

 

[Walter Hall]

So how do you work out quickly in your head how much of a price increase that should produce?

It is a 2.13% increase so just over two pence in the £ (2.1277% if you want to be pedantic)

How did you arrive at those figures? I thought it had gone from 17½% to 20%

Yes it has but the effective increase in price is from 117.5 to 120 which is a 2.13% increase.

The calculation is just basic arithmetic

120 divided by 117.5 multiplied by 100 = 102.127659574468 minus 100 = 2.127659574468

rounded to two decimal places = 2.13


There is therefore a 2.5% increase in the tax, but only a 2.13% increase in the overall price.

Strictly speaking there has been a 17.02% increase in the tax. (17.5/20x100)-100 =17.02

 

[big soft moose]

for big ticket items , if comparing several i'd be inclined to ask the dealers for the ex vat prices as the vat proportion is irrelevant to the comparative price as it will be the same across the board (excepting s/h items from private sellers). and getting exvat prices will stop them hiding a price hike in the vat increase

for small items it makes so little difference that its not worth worrying about - an item that used to cost 1.18 (ie £1 ex vat with the .5 rounded up because you cant charge half pence) is now going to cost 1.20 BFD

 

[devonwoody]

I disagree with your observation.

If you are going to spend 15K this year on vat taxable goods whether items are large or small that will amount to over £300 extra, plus inflation.
The BBC man on the news this morning said its going to be £7.50 per week extra for the average family.
Rail fares up +10%
Fuel up %?
I still say Stand by.