Vat decreases

[p111dom]

Now that it's after 5pm Axminster seem to have put on the vat decrease already. Just a heads up if you're putting off making an order.

 

[13eightyfour]

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?

 

[Corset]

I think the benefits are less for the consumer but more so for the business side. 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. It has allowed me to keep a member of staff on for an extra month till she finds a job so I am most happy and so is she. These things work in different ways.
Owen

 

[joesoap]

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?

Well I don't know ...........The first political reduction since ww 2 and still T E Four has to moan about it . Some folk are never happy . £2 , 50 can buy a coupla pounds o brads . Whats wrong with that .

 

[CWatters]

Don't forget the export angle. VAT is 21.5% in Belgium and Ireland.

 

[Terry Smart]

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!

Also, (and I'm not sure if I've understood you joesoap) for exports, a VAT registered company doesn't pay VAT to the supplier for stuff they import, they have to pay it to their local version of HMRC at their country's rate.
If you buy anything from another country as a non-registered buyer you run the risk of being charged the difference anyway in import duties etc.

 

[thomvic]

To 13eighty-four:
The actual saving on your £99.17 spend would have been £2.11 - I tend to agree - not enough to influence a buy or not to buy decision.

To Corset:
You are right to note that businesses which don't or can't pass on the reduction will be the main beneficiaries. However, Mr Brown "sold" the reduction on the basis that it would boost consumer spending. It probably won't.

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.

 

[13eightyfour]

Well I don't know ...........The first political reduction since ww 2 and still T E Four has to moan about it . Some folk are never happy . £2 , 50 can buy a coupla pounds o brads . Whats wrong with that .

What can i say im a pessimist :wink: I know i could probably find something to spend £2.50 on (a beer perhaps ).
I think the idea is great but i just dont think its enough, I know it cant be lower than 15% because of EU something or other.

 

[p111dom]

Well I just put in an order to Axminster for £126 and saved £3.15 and since Axminster tends to be pretty cheap compared to others I think that's ok. Better than having not saved it.

 

[MIGNAL]

A 2.5% reduction is a piffling amount. Of course if it had been a 2.5% increase it would have been an absolute humongous amount :?

 

[thomvic]

To p111dom

If you have paid £126 inclusive of VAT at the new rate then you have saved £2.74. However, as you say, better to have than not have.

 

[p111dom]

Yes you're quite right I based the price I paid as attracting 17.5% when of course it was only 15%. Still better in my pocket than theirs and definately better in my pocket than the govts.

 

[wizer]

If anyone didn't get the email:

http://dmtrack1.net/5F-CL5-20335BY17/cr.aspx

There's a few good deals on there. Doesn't seem great because of the recent price increases, but every penny counts.

 

[Digit]

IF it's passed on the reduction will make a difference on new house builds I should think, but if people can't get mortgages it will be rather academic I fear.
But for day to day living the results will be unnoticeable.

Roy.

 

[Doug B]

Roy.
New house builds are exempt from vat, though it might encourage folks to spend money on extensions etc, where 2.5 percent discount on £50,000 plus, will make a difference.

 

[Digit]

So I understand now James, but what fooled me was the place next door. It was let and apparently that effects the reclamation. The builder was certainly moaning. What happens if the main builder subcontracts some of the work? That must get complicated?

Roy.

 

[9fingers]

I suspect that the most noticeable effect will be a rush to buy things NEXT december to avoid the re-introduction of 17.5%.

For some reason the desire to avoid an increase is greater for most people than the lure of a vat cut now.

Bob

 

[Doug B]

Not 100% on that one Roy.
I did have a case where i was sub-contracting to a main contractor, & i had a lad sub-contracting to me, so the tax man (God bless him) wanted the lads tax stopping twice. Once from the payment made to me for his labour & once from the payment from me to him.
In the end the lad had to sub directly to the main contractor as things were getting so confusing.

 

[Digit]

The house next door was subbed for ground breaking, plumbing, electrics, heating and land scaping. The builder went broke!
There are no large private companies around here, mostly one man bands, and according to Jewsons new builds are now as rare as hen's teeth.

Roy.

 

[Doug B]

Its a terrible shame, but in most parts of the country new builds are non existent.
But if folks can`t get morgages, then there`s no demand.