SamUK

iTrader: (1)

To 20%...

Heard it on TV this morning...

Luminous

iTrader: (3)

I can understand why they are doing it. Its one tax that is really hard to avoid. Yes, OK there are people who have their own businesses who can claim quite a bit of it back, but by in large most people cannot dodge it.

Just a shame that all those people who have just reprinted everything to read 17.5%, are going to have to reprint again....

davyboy

Should never have gone down to 15%.

I wonder how much money was lost while VAT was needlessly at 15%?

I guess that means we can look forward to more expensive petrol too.

Luminous

iTrader: (3)

Oh yes, more tax on petrol is coming Liberals are very "green", so that is one area that they are going to push for higher taxes. Good thing is that the Torries can moderate some of their policies and let us get some new power stations. Liberal's policy was going to leave us in the dark ages on that one.

SamUK

iTrader: (1)

I feel for you guys in the scoobies...i bet ya all drive nice and slow now.. lol...

I rarely drive my M5..

Snazy

Was dropped to be popular rather than effective, always knowing it would have to hike, and I reckon they were pretty sure it would not be them having to make the unpopular rise. labour that is.

I reckon I will survive with the increase, ho hum, needs must.

Leslie

When the economy is so badly shot you really can't expect much else when you think about it. The country going bankrupt like Greece is a far worse situation!

Les

stilover

Not confirmed though. Just City annalists assuming the Government `will` raise VAT.

TBH it wouldn't bother me too much. Those that buy more, pay more tax.

stilover

Not true.

The Tories are wanting to create a sliding Tax on fuel. So if oil prices rise, duty comes down. If Oil prices fall, duty rises.

Makes sence, and stops fuels going from £1/litre to £1.20/litre within a month.

And it looks like they're wanting to stop all these speed camera partnerships.

http://www.pistonheads.com/news/defa...?storyId=21934

SamUK

iTrader: (1)

Thats how it always begins...media say raise to 25%, the public say WHAT, the politicians say its not 25% its 20%..

The public are now happy as the reduced it by 5%, and forget about the original increase..

This is what they did with bikes and parking in central london...they call it a discount.

stilover

Were all going to have to pay more tax, given the situation the countries in. Rather VAT rises and those that spend pay more, rather than the labour way of raising NI, so everyone pays.

davyboy

Quoted the wrong person. I have a 50+mpg car and a push bike.

EddScott

So back to VAT on goods.

If your a business and your registered for VAT, does that mean your prices have to go up?

We've just started a business and I've done 1 return already but it was all purchases and no sales. Its an existing business and prices are already set but will we have to raise our prices - or does it mean we will just get more back when we do a return.

Also - when you do a return do you get it back 1 for 1?

Geezer

Er, we all pay more if VAT increases! If you buy no more than you buy now, you still have a 2.5% increase on your shopping bill. A NI increase would only affect those who pay NI, which isn't everyone, so the NI increase was less punitive.

I'm not disagreeing we all need to pay more tax if we are to get out of this mess, but your logic is seriously flawed

Geezer

Terminator X

iTrader: (7)

They've got to pull in money from somewhere / anywhere so expect to get scr*wed & it could last the entire 5yrs that they're in power The medicine will be slightly easier to swollow as long as they also tighten their belts too

TX.

Coffin Dodger

Better not ******* do it until my extension is built

The VAT bill on that is silly as it is let alone at 20%

Terminator X

iTrader: (7)

As if we can all avoid buying stuff

TX.

Terminator X

iTrader: (7)

Don't you quote people + VAT rather than incl VAT?

TX.

SamUK

iTrader: (1)

I wonder is VAT will also be applied to food? that will effect everybody

Snazy

I could have sworn VAT applied to quite a lot of stuff in Sainsburys etc already? I know some foods are exempt.

Just looked it up on HMRC, and got this
Food and drink, animals, animal feed, plants and seeds
Food and drink for human consumption is, in general, zero-rated but many items are standard-rated, including alcoholic drinks, confectionery, crisps and savoury snacks, food for catering or hot takeaways, ice cream, soft drinks and mineral water

SO I guess if they add it that could have a slight impact, but hey ho.

Luminous

iTrader: (3)

If you charge £1 for something ex VAT, currently a customer will pay you £1.175 (ok you will round up). A business customer is able to reclaim that VAT element, a consumer cannot.

If VAT goes up to 20%, and you still charge a total of £1.175 for your item, you will still have to pay the government 20p. That leaves you with the choice of either raises your prices, or cutting your margins to cover the rise.

If most of your customers are businesses who reclaim the VAT anyway, increase the price to £1.20. They won't care as they can claim the increase back.

If you sell to consumers your choices are harder, and will be based on what your competition does. Most businesses will try to increase the prices, but if that means your competitors are cheaper then you may lose out

Luminous

iTrader: (3)

I was not aware of that, that is at least good news. However, from what I heard before the election it would appear that they do want the price of fuel to go up. I did hear a figure of £1.30 to £1.40 a litre being talked about. No doubt when it is at this price they will use the measures you talked about above to hold it at the level.

Either way, I really don't think we are in for fuel prices to come down, they will just be higher and stable.

And yes, they did mention it as an election issue to get rid of the scamera partnerships. Thats a great idea, but living in Co Durham I have been blessed that we don't have one of those anyway.

David Lock

VAT. If you're a registered business then your prices will be higher but you can claim back the higher VAT you pay on goods supplied to you. Of course you can choose to reduce your basic price to absorb the extra costs from your bottom line.

Many basic food and clothes items for kids are excluded from VAT anyway.

Fuss will come when basic tax rates goes up - which it should do IMHO.

dl

urban

iTrader: (1)

From working with food companies via computer systems basically its like this

If its a luxury item then there is VAT in the price

i.e. a plain digestive is zero rated, but a chocolate digestive will be subject to VAT

Terminator X

iTrader: (7)

"Essentials" carry no VAT with "luxury items" having it added. Principle is that you can't choose not to buy things that are essential (bread, water, clothes etc) whereas luxury items are your choice

TX.

billythekid

What really gets on my **** is that competitors of mine are not reg'd for VAT so they are always 17.5% cheaper than me. Then, if VAT goes up I will still have to keep my prices the same as I cant be 20% more than other people - so it means I have to lose a large chunk of my income to cover this....

Small businesses getting a kick in the teeth again... great. Sigh.

EddScott

I know its going to sound stupid but I hadn't realised that you only claim VAT back on purchases and not sale - I know very silly.

We planned to raise prices anyway so I guess the VAT increase is the excuse we need.

Aztec Performance Ltd

iTrader: (234)

VAT input vs output.

Everything you have purchased for you business will show VAT at 17.5%, this is what you can claim. Everything you sell will be at whatever rate is current.

All you are doing is collecting VAT on behalf of HMRC. You should work things EX-Vat on the business side of things as the VAT is never yours.

Unless your business is b2b, you will need to show customers inclusive prices.

It's amazing that some "traders" on here still claim to be under the VAT threshold of just a couple of hundred pounds worth of turnover per day to evade VAT/Tax. It is virtually impossible for a full-time business selling physical goods to operate below this level

It's worth getting an accountant to do your books if you are unsure on anything.

Kev_turbo

No they are not 17.5% cheaper, you are charging more!! You claim back the VAT on fuels, materials, equipment etc making your overheads 17.5% less. It costs you less to go out to work for a day than the equivelent Non VAT registered guy. The non vat registered guy still pays vat only he pays it with each and every purchase and not as a lump quarterly

That is unless you are purely a consultancy service with no material input to the business in which case stop moaning as you are earning in excess of £60k a year or you would not need to be vat registered!!

Aztec Performance Ltd

iTrader: (234)

Nonsense! A non-VAT registered business will always be better off.

Chances are, if they are avoiding VAT registration, they will be evading tax also.

If you suspect anyone of VAT/Tax evasion they can be reported online here: https://online.hmrc.gov.uk/shortform...ww.hmrc.gov.uk