[cite]Posted By: Oggy Red[/cite]My dear old Mum, 79 years old and bright as a button, phoned me today.
She was "cross" (her word) that the VAT increase was specially timed from January 1st and would mean that she would pay more VAT on the bargains she bought in the January Sales.
Oggy, my understanding is that the VAT rise is WEF 4th Jan. Your mum should be able to do her bargain shopping before :-)
Off_it - it's a fruit delivery service. Looking at the HMRC website it seems to me that delivery should be zero rated too, and my lecturer agrees with me, so not too sure why the company is expecting us to factor in VAT. I'm just going to hand in two projections, one with and one without VAT.
[cite]Posted By: Oggy Red[/cite]My dear old Mum, 79 years old and bright as a button, phoned me today.
She was "cross" (her word) that the VAT increase was specially timed from January 1st and would mean that she would pay more VAT on the bargains she bought in the January Sales.
Oggy, my understanding is that the VAT rise is WEF 4th Jan. Your mum should be able to do her bargain shopping before :-)
Razil - most ditributors/freight/haulage firms will get back the VAT they pay, so don't let them hoodwink you with that one!
GNelson - your firm definitely wants to take some advice on that as it will make a massive difference if you can't just pass the VAT cost on. I can help you/your firm if you like as I do that sort of thing all the time. Send me a whisper if you want to know more.
Thanks Off_it, but after my research the ceo of the company spoke to her accountant and it turns out that they don't have to charge VAT on any of their new fruit delivery service, which has saved them a bit of money! Also means that I might get a decent mark too... fingers crossed.
In Germany VAT rose a few years ago with as with our VAT rise there was a six month delay between the announcement and its implementation.
The consequence was a rise in retail sales in the short-term as many people upgraded their car/TVs etc followed by a sharp slow down in retail sales. Similarly there was an increase in industrial spending followed by a slow down. My feeling is that the same thing will happen in the UK.
HMG still owns large tranches of Northern Rock, Lloyds and RBS - having invested £65.5bn. The best way to get the deficit down is to encourage responsible bank lending which should boost their balance sheets followed by a sell off by which time we could actually be making and banking a profit on that investment. A rise in VAT willl hit the retail sector and therefore jobs.
As for the major parties not ruling out VAT rises in their manifesto packages one major party took the Conservative's to task running ads which mentioned the Tory "VAT bombshell" and made no VAT rises a major part of their manifesto. That party was the Lib-Dems.
[cite]Posted By: BlackForestReds[/cite]As for the major parties not ruling out VAT rises in their manifesto packages one major party took the Conservative's to task running ads which mentioned the Tory "VAT bombshell" and made no VAT rises a major part of their manifesto. That party was theLib-Dems.
[cite]Posted By: BlackForestReds[/cite]In Germany VAT rose a few years ago with as with our VAT rise there was a six month delay between the announcement and its implementation.
The consequence was a rise in retail sales in the short-term as many people upgraded their car/TVs etc followed by a sharp slow down in retail sales. Similarly there was an increase in industrial spending followed by a slow down. My feeling is that the same thing will happen in the UK.
HMG still owns large tranches of Northern Rock, Lloyds and RBS - having invested £65.5bn. The best way to get the deficit down is to encourage responsible bank lending which should boost their balance sheets followed by a sell off by which time we could actually be making and banking a profit on that investment. A rise in VAT willl hit the retail sector and therefore jobs.
As for the major parties not ruling out VAT rises in their manifesto packages one major party took the Conservative's to task running ads which mentioned the Tory "VAT bombshell" and made no VAT rises a major part of their manifesto. That party was the Lib-Dems.
Surely that's what a coalition is all about. Both parties can't possibly have it all their own way, it would never work. It's give and take & I am hopeful it will work well.
Comments
Oggy, my understanding is that the VAT rise is WEF 4th Jan. Your mum should be able to do her bargain shopping before :-)
True, most sales start in December anyway.
Also no need for fuel duty hike as increase VAT on petrol
when are they gonna tackle public sector fat cat pay I ask?
GNelson - your firm definitely wants to take some advice on that as it will make a massive difference if you can't just pass the VAT cost on. I can help you/your firm if you like as I do that sort of thing all the time. Send me a whisper if you want to know more.
The consequence was a rise in retail sales in the short-term as many people upgraded their car/TVs etc followed by a sharp slow down in retail sales. Similarly there was an increase in industrial spending followed by a slow down. My feeling is that the same thing will happen in the UK.
HMG still owns large tranches of Northern Rock, Lloyds and RBS - having invested £65.5bn. The best way to get the deficit down is to encourage responsible bank lending which should boost their balance sheets followed by a sell off by which time we could actually be making and banking a profit on that investment. A rise in VAT willl hit the retail sector and therefore jobs.
As for the major parties not ruling out VAT rises in their manifesto packages one major party took the Conservative's to task running ads which mentioned the Tory "VAT bombshell" and made no VAT rises a major part of their manifesto. That party was the Lib-Dems.
Who?
Surely that's what a coalition is all about. Both parties can't possibly have it all their own way, it would never work. It's give and take & I am hopeful it will work well.