VAT Increase Due April 6th ....
#32
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Why can Osborne not work out that when things become too high a price people stop buying them.... look at petrol, massive downturn in sales... so he puts VAT up and the sales decrease further meaning the absioute amount he collects gets even lower and the economy stagnates even more!
#33
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Oh lord...please no Watchin his football is more than enough pain for me thanks.
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Couldn't do any worse
Why can Osborne not work out that when things become too high a price people stop buying them.... look at petrol, massive downturn in sales... so he puts VAT up and the sales decrease further meaning the absioute amount he collects gets even lower and the economy stagnates even more!
Why can Osborne not work out that when things become too high a price people stop buying them.... look at petrol, massive downturn in sales... so he puts VAT up and the sales decrease further meaning the absioute amount he collects gets even lower and the economy stagnates even more!
You sound like a true child of the empire
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That is very true, although I wouldn't fancy your chances in a Vat inspection.
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The average business in that category would therefore be no better off but no worse off. There will of course always be people either side of the average for that category who for whatever reason buy either more or less goods that are vat liable. However if your customers are buying these goods and claiming
Vat back on them that you would not have been able to claim, the vat man is losing money.
So for example if you were a builder on the flat rate scheme, how could you explain that you didn't need to buy any materials?
#40
http://news.sky.com/story/1016241/va...cent-warns-ifs
Doesn't say anything other than the IFS warns it may have to go up.
Doesn't say anything other than the IFS warns it may have to go up.
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f1_fan Just because prices go up doesn't mean I spend less I have £100 to spend and the government gets £20. Next year i will still spend the £100 but the government gets £25. Prices will rise and I will get less for my money, but I won't spend less.
#47
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Certainly would make me think more than twice about any building work or big ticket purchases that would expose me to that VAT rate, I'd just save more. Not what they want! Only exception would be buying stuff at liquidation because of all the retailers that would go under.
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IFS not IMF, that would be of more concern.
f1_fan Just because prices go up doesn't mean I spend less I have £100 to spend and the government gets £20. Next year i will still spend the £100 but the government gets £25. Prices will rise and I will get less for my money, but I won't spend less.
f1_fan Just because prices go up doesn't mean I spend less I have £100 to spend and the government gets £20. Next year i will still spend the £100 but the government gets £25. Prices will rise and I will get less for my money, but I won't spend less.
There is a statistician's curve (can't remember the name) that plots price against demand and indicates the point at which total revenue starts to drop because the price has got so high fewer and fewer people are buying and are no longer making up the difference despite the higher price .... petrol has gone over that peak now and won't come back unless the overal price drops... adding more duty and VAT will actually result in less absolute revenue in the longer term.
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#51
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PMSL! Lewis you are such a stirrer. He has completely twisted it.
A computation was done and found that in order to pay back the deficit in the timescale that the Conservatives suggested meant that due to the economy not doing as well as expected meant it was EQUIVALENT of having to put VAT upto 25%.
They would not dare do that. It would kill the economy stone dead
A computation was done and found that in order to pay back the deficit in the timescale that the Conservatives suggested meant that due to the economy not doing as well as expected meant it was EQUIVALENT of having to put VAT upto 25%.
They would not dare do that. It would kill the economy stone dead
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Whether its true or not (and I think it could happen) have these people never heard of more may be less?
Like the steady increase in fuel prices has resulted in people buying more economical vehicles or using their vehicles less has resulted in less revenue. The huge cuts in public and private employment resultes in more people on benefit and less income taxes and national insurance paid into HMG. An increase in VAT will result in less vat receipts as people spend less.
Like the steady increase in fuel prices has resulted in people buying more economical vehicles or using their vehicles less has resulted in less revenue. The huge cuts in public and private employment resultes in more people on benefit and less income taxes and national insurance paid into HMG. An increase in VAT will result in less vat receipts as people spend less.
#53
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It's ok if you claim vat back, but you still have to buy things and pay vat on them as you are unable to claim back everything so it would make a difference to everyone.
If it was to happen which it wouldnt as it would cripple us....fuel, for a start would be enough to break allot of people.
If it was to happen which it wouldnt as it would cripple us....fuel, for a start would be enough to break allot of people.
#54
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Yes the government will get more of your money and the retailer less. Yes you will get less goods and services for your money. But why would you spend less
In fact some people might dip into their savings to maintain their current standard of living, so everyone's a winner, except the banks.
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