# Vat reduction



## Wallsendmag (Feb 12, 2004)

But duty on petrol increased to make up the difference. :twisted:


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## Hark (Aug 23, 2007)

But no car tax increase .... yet.

Swings and roundabouts but tbh I'm glad its that way round.

Don't think 2.5% vat reduction is going to make much difference tbh

My 4 biggest bills are my mortgage, 1 loan, food and petrol. None of these will be affected.


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## Wondermikie (Apr 14, 2006)

Hmmm I don't think the VAT reduction is much use either, they'll have to increase taxes at some point to find all this money they're intending on spending, seems like 2011 might be a good time to go self employed and become a tax dodger :x


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## rustyintegrale (Oct 1, 2006)

Wondermikie said:


> 2011 might be a good time to go self employed and become a tax dodger :x


How do you imagine being self-employed makes you a tax dodger?

Cheers

Rich


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## Wondermikie (Apr 14, 2006)

'Cos everyone I know who is freelance pays *significantly* less tax or national insurance than me (being a PAYE employee) via their own limited company or they use an umbrella company instead.


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## Private Prozac (Jul 7, 2003)

What it means to me ....FUCK ALL.

Cheers Darling!


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## rustyintegrale (Oct 1, 2006)

Wondermikie said:


> 'Cos everyone I know who is freelance pays *significantly* less tax or national insurance than me (being a PAYE employee) via their own limited company or they use an umbrella company instead.


And you get no holiday pay, sick pay, bank holiday pay, have to do accounts, pay an accountant, only get paid for the hours you actually work. Source, purchase and maintain your own equipment, work when work is available - nights and weekends, pay VAT.

And to be honest, the only benefit to me is getting my petrol against tax...

Cheers

Rich


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## Wondermikie (Apr 14, 2006)

rustyintegrale said:


> ...the only benefit to me is getting my petrol against tax...


You need a new accountant then 

Seriously, I have nothing against working freelance or being self employed, but like I say, you end up paying significantly less tax than a PAYE employee, and if that wasn't the case the govt wouldn't get their knickers in a twist with IR35 to try and catch everyone out.

If there is a single self-employed person on this forum who pays themselves a salary equivalent to what their actual income is, rather than the minimum wage, mileage allowance, dividends, expenses, no NI contributions, different VAT rates, etc then I'll eat my hat, live on air.


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## rustyintegrale (Oct 1, 2006)

Wondermikie said:


> You need a new accountant then


Funnily enough you're not the first person to say that and I've been thinking it for a while. The problem is most accountants today actually work for the benefit of the Inland Revenue and not their clients. :roll:

The days of an accountant prepared to bend the rules yet stay within the law are long gone. Although if you know different then I'd be happy to find one. 

Cheers

Rich


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## Hark (Aug 23, 2007)

Rich you buy far, far too many mods for me to feel remotely financially sorry for you lol :wink:


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## head_ed (Dec 10, 2002)

No help to small business in this report at all as far as I can see.

VAT reduction? So what. I charge VAT, I get charged VAT - it just passes straight through my hands, doesn't matter whether it's 15% or 150%


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## jammyd (Oct 11, 2008)

VAT Reduction...

Me Pissed off...

Car was bought in September for 30,000 VAT 17.5% Tax of 5250
Car if Bought in December for 30,000 VAT 15% Tax 4500

Saving of 750 pounds...

Bastards!

BTW this is not how much mine cost... just an example which was easy to follow!


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## Wondermikie (Apr 14, 2006)

Because I lease my Micra I've been told today that the VAT is only charged on each individual payment, so I'll save about £4 each month for the next 13 months, wow 

Interestingly, I did hear a rumour that when it goes back up again it might be at 20%, now that would really be taking the piss.


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## westty (Jan 3, 2004)

VAT down to 15% for 18 months then up to 20% for good. Sound economics from the Chancellor :roll:


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## CamV6 (Oct 26, 2003)

2.5%

Oh do fuck off wee Gordie, you prick. How about having a proper shake up of income tax?

I mean 40% at over 40k? That was set when £40k was worth an aweful lot more than it is now.

Sod off you theiving git condescending git. How thick does he think we are?

Its gonna make sod all difference to the average man on the street, and I fail to see how its oing to stimulate consumer spending.

If I spend £100, I'll save £2.50. Whoopee fucking doo, brilliant, thanks a lot. That's hardly going to make me or anyone else run out to the shops and go nuts on prezzies this xmas.

Poke it, wanker [smiley=argue.gif]


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## Wondermikie (Apr 14, 2006)

I like it, nice rant :lol:

When you add up the costs of implementing the VAT rate change, the admin costs, the fact that some people will get it wrong and pay too much/too little, then what is the point? The only winner is someone who is about to spend serious cash on a new car.


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## Hev (Feb 26, 2005)

Bloody politicians!!!!

We buy stock.........VAT paid at 17.5% rate.....we sell stock.....VAT applicable 15.5% :evil: .....how does this help a small business?! Only portion of spectacles is VAT applicable and yet we have to re-price EVERYTHING just in case we get a VAT inspection (even though the difference is likely to be £1 or so - almost worth while having a wee dish of shrapnel on the counter and asking people to help themselves!).

The amount of work that has just been created for us is horrendous - if we sat on our ass and did bugger all then I'd be happy to have something to do but we are not quiet! :evil: :evil: :evil:

Assholes!

Hev x :x


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## rustyintegrale (Oct 1, 2006)

Hev said:


> Bloody politicians!!!!


Yes I'd love to. :twisted:

From the nose, eyes and @ss****  (well someone else can take on the rear end... :wink: )

They've no business experience at all and have zip all idea what hassle they create for us all...

Cheers

Rich


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## denTTed (Feb 21, 2007)

I'll have to get my menu's reprinted, so it costs me money. Bugger


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## clived (May 6, 2002)

I don't think it's soooooo meaningless - if you add up everything you spend on VAT qualifying stuff over the course of a year, and then take 2.5%, it adds up - I assume that it would be hundreds of pounds for a lot of folk here. Sure, not enough to change your life, but pays for a gadget or two


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## Hilly10 (Feb 4, 2004)

Wondermikie said:


> 'Cos everyone I know who is freelance pays *significantly* less tax or national insurance than me (being a PAYE employee) via their own limited company or they use an umbrella company instead.


But as a PAYE employee you get holiday pay, sick pay, redundancy and unemployment benefit :wink:


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## Wondermikie (Apr 14, 2006)

Hilly10 said:


> Wondermikie said:
> 
> 
> > 'Cos everyone I know who is freelance pays *significantly* less tax or national insurance than me (being a PAYE employee) via their own limited company or they use an umbrella company instead.
> ...


Yes very clever, but if we both earned the *same* amount (irrespective of whether some of mine was sick pay or holiday pay or whatever, or he worked "harder for his", or didn't get any holidays) I would pay more tax, which is the point I'm getting at. Pound for pound.


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## Hilly10 (Feb 4, 2004)

I do not disagree with you that we self employed pay less tax but do not forget they sting me for NI on profit at year end Think of it like this should I be ill for 2 weeks what do I get absolute Jack shit, no state handouts coming my way fella. We have to plan for this and other eventualities and the risk


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## clived (May 6, 2002)

Erm, VAT discussion anyone? :wink:


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## brittan (May 18, 2007)

Hev said:


> Bloody politicians!!!!
> 
> We buy stock.........VAT paid at 17.5% rate.....we sell stock.....VAT applicable 15.5% :evil: .....how does this help a small business?! Assholes!
> 
> Hev x :x


More bad news: The new VAT rate is 15%. Hope you're not going to have to redo all those price tags. :roll:


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## moley (May 14, 2002)

CamV6 said:


> If I spend £100, I'll save £2.50. Whoopee fucking doo, brilliant, thanks a lot.


Actually, to be pedantic, you save only about £2.13.

The £100 original price includes 17.5% VAT, so if you deduct the VAT, the starting price is about £85.10. Then adding 15% VAT gives you a new selling price of £97.87, saving £2.13 not £2.50  So it really is bugger all.

I noticed on my Sainsburys shopping bill yesterday that I did save some money with the new 15% VAT (which they've started to apply early) - a whopping 20p. That was on a bill over £100. Thanks a bunch Gordon. Now what should I spend that on?

Moley


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## Hilly10 (Feb 4, 2004)

If its FOOD you purchased from Sainsbugs remember its Zero VAT


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## Hev (Feb 26, 2005)

VicTT said:


> More bad news: The new VAT rate is 15%. Hope you're not going to have to redo all those price tags. :roll:


Oooops, typo! :roll: :lol:

Hev x


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## moley (May 14, 2002)

Hilly10 said:


> If its FOOD you purchased from Sainsbugs remember its Zero VAT


Yes I realised that. It just goes to show that as people will be doing food shopping the most often, the impact of the VAT decrease is limited.

Moley


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## Hilly10 (Feb 4, 2004)

Never mind though choccy biccis will plummet in price as they are atract VAT :lol: :lol:


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## moley (May 14, 2002)

I'm now saving 3p a day on my lunchtime baguette - just thought I'd share my good fortune with everyone :wink:

Moley


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## R6B TT (Feb 25, 2003)

moley said:


> I'm now saving 3p a day on my lunchtime baguette - just thought I'd share my good fortune with everyone :wink:
> 
> Moley


Could save yourself a lot more if you made your own at home


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## ag (Sep 12, 2002)

The 15% vat actually addresses itself at those who aren't in the shit because they've borrowed way too much and who will always struggle, but to those that have saved carefully all their lives and now see the return on those savings rapidly disappear.

Unfortunately the halving of the returns on someone's pension is hardly compensated for by a reduction of 2.13% on luxury goods.

Darling is a cock. Brown is a cock. We are run by cocks and by god we're going to get fucked by them!

This whole situation was enevitable, the real crime is not that people are being kicked out of their houses, if you borrow too much and can't pay, tough shit, its that retired people are now paying for the over extravagances of everybody else through no fault of their own.


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## Juber (May 20, 2007)

Duty on petrol went up 2p so the VAT reduction of 2p means they have cancelled eachother out hence the same flux on petrol prices


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## westty (Jan 3, 2004)

Juber said:


> Duty on petrol went up 2p so the VAT reduction of 2p means they have cancelled eachother out hence the same flux on petrol prices


Ah, but will the duty on petrol come down 2p when vat goes back up? :roll:


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## Hilly10 (Feb 4, 2004)

westty said:


> Juber said:
> 
> 
> > Duty on petrol went up 2p so the VAT reduction of 2p means they have cancelled eachother out hence the same flux on petrol prices
> ...


Will it fuck. Shafted by Gordon and his puppet Darling once again


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