Vat decreases

[Chems]

The best way to save from Axminster is wait till you get an ebay voucher if your a user, I got a 15% one this week an that basically removes vat, axminster have all of their main stuff online so if I was to buy a big machine 15% off would be nice with a maximum saving of £100

 

[BradNaylor]

We charge an admin fee for a service a £65.00 inc. With the Vat decrease I will make about £1500.00 more a year.

So you're saying the idea is for shops and businesses to charge the same as they did before and treat the extra 2.5% (I know it doesn't really work out to that) as extra profit margin?
Hmmm, not really sure that was the plan!

I'm sure it wasn't the plan, but in very many cases it will be the reality!

I can't see the butty shop near my workshop reducing the price of a bacon barm from £1.99 to £1.95 to reflect the change in the VAT rate. No, they'll just take it as extra margin.

I'm not registered for VAT, trading below the registration threshold of £68,000 per year. So I can't claim back the VAT on my business purchases.

If I spend £10,000 pa on timber and other materials, the lower VAT rate saves me £250 a year. I certainly won't be passing that on in lower prices to my customers!

The big retailers are making a big PR show of knocking a bit of VAT off at the till. We were in Sainsburys last night and the check-out girl made a point of showing us how much we'd saved on the dressing gowns we'd bought for our daughters.

They'll sneak the prices back up as soon as they are able to to the next standard retail price point. A £19.99 dressing gown won't remain at £19.56 for long - they know they will sell just as many at £19.99, so they might as well make the extra few pence for themselves. Can you honestly see them going to the expense of reprinting and changing all the price tickets on all the stock? They'll just knock it off at the till for as long as they have to - then stop doing it once the spotlight's off.

It'll be all over by Christmas!

There's nothing wrong with this - a shop can charge what the hell it likes, so long as it accounts for VAT correctly at the pertaining rate.

Dan

 

[CWatters]

The best way to save from Axminster is wait till you get an ebay voucher if your a user...

Tell us more? Do you have to be an existing Axminster customer to get one of those?

 

[CWatters]

IF it's passed on the reduction will make a difference on new house builds I should think..

Vat isn't charged on new houses and builders can reclaim the VAT paid on materials anyway so the VAT reduction won't reduce price of new house. Would reduce cost of an extension though.

 

[chippy1970]

Is it just me or is this whole VAT decrease pretty pointless? I mean i like saving a bit of money, but i wouldn't hold off ordering anything based on the fact that i could save a tiny amount if i waited a week.

I placed an order with axminster at the beginning of the week it came to £99.17 so i would have saved about £2.50?!

I keep seeing adverts on the TV rambling on about the 'NEW' VAT and savings, Is this quite frankly pathetic saving really going to get people out spending again?

If you were thinking of buying a new van at £16000+ as I am in the new year then that 2.5% makes a big difference

 

[Chems]

The best way to save from Axminster is wait till you get an ebay voucher if your a user...

Tell us more? Do you have to be an existing Axminster customer to get one of those?

No if your a good ebay user they send you 15% off vouchers and free postage vouchers every now and then, use these to buy things from Axminsters shop on ebay. All the same prices and free delivery on the large orders. There are even a few sites on the internet that publish a list of the voucher codes with success rates.

 

[frugal]

So you're saying the idea is for shops and businesses to charge the same as they did before and treat the extra 2.5% (I know it doesn't really work out to that) as extra profit margin?
Hmmm, not really sure that was the plan!

SWMBO works for a yarn shop that sells over the counter and online. The online prioces have all come down automatically when they changed the VAT rate setting, but the prices in the shop are staying the same as no one can be bother to reprice 10,000 balls of wool to knock 2p a unit of of them.

I work for one of the big mobile telcos and everyone has been running around like headless chickens trying to work out what the effect of changing the VAT rate will be on the 1000 or so applications we have (some of which have not been touched since 2000 or so)

Fortunately the VAT man has stated that he will be taking a "light touch" with the next quarters return as no one from the companies to the accountants to the VAT man can figure out how this is all going to work.

And all with 5 working days notice....

 

[CWatters]

To CWatters:
The change in VAT will not affect exports - they carry no VAT at all and imports are taxed at the standard rate of the receiving country - not the exporting one.

Well yes and no. Exports to the EEC do carry VAT unless the purchaser is VAT registered. Only exports going outside the EEC can be zero rated for all....

http://www.businesslink.gov.uk/bdotg/ac ... 1078129512

So a Belgian couple might have more incentive to come christmas shopping in the UK. Well they would if prices and cost of living in Belgium wern't lower generally.