VAT rise on the cards

[BoRED S2upid]

Anyone called the VAT payment line lately, the first thing the nice people say is "so you want to set up a payment plan?" obody can afford to pay it in the present climate.

[Dave_ST220]

BoRED S2upid said:

Anyone called the VAT payment line lately, the first thing the nice people say is "so you want to set up a payment plan?" obody can afford to pay it in the present climate.

Why can you not afford to pay £££ that is not yours to spend?

[Eric Mc]

Because people use the VAT received from their customers to finance their expenditure - which is, of course, going to compromise their position when the time comes to pay over the VAT they have collected.

[Parrot of Doom]

Eric Mc said:

Because people use the VAT received from their customers to finance their expenditure - which is, of course, going to compromise their position when the time comes to pay over the VAT they have collected.

Or, in many cases, the VAT they're expecting to receive from their customers doesn't arrive because just about everyone in business now thinks that they can take 3 months to pay a bill that should be paid in 30 days.

Edited by Parrot of Doom on Thursday 18th March 12:59

[Eric Mc]

Parrot of Doom said:

Eric Mc said:

Because people use the VAT received from their customers to finance their expenditure - which is, of course, going to compromise their position when the time comes to pay over the VAT they have collected.

Or, in many cases, the VAT they're expecting to receive from their customers doesn't arrive because just about everyone in business now thinks that they can take 3 months to pay a bill that should be paid in 30 days.

Edited by Parrot of Doom on Thursday 18th March 12:59

If that's the case, they should seriously consider switching to "Cash Accounting for VAT".

[jamesb300]

Eric Mc said:

Don said:

AndrewW-G said:

zero rated items (food, children’s clothing etc) go from 0% to 10%

Political dynamite, that. Putting it on food would cause absolute outrage. And rioting. Don't forget the rioting. We haven't had that yet and no recession is complete without it. So maybe they will do it so we can have the rioting.

You would be surprised how many "food" items are already Standard Rated for VAT purposes.
The difference in VAT treatment between differing classes of food causes all sorts of technical and other issues and takes up a surprising amount of retailers' time and effort in arguing over such matters.

A huge number of VAT cases have been triggered by arguments over whether a certain type of biscuit or a certain type of crisp was a "food" or a "confectionery".
Other rows have arisen over whether a supply of food was "a normal supply of food" or a supply of "hot prepared food".

Maybe just bringing in a flat 10% for ALL foodstuffs would be better all round.

Edited by Eric Mc on Thursday 18th March 08:26

Was that the issue over the Jaffa Cake - whether it was a biscuit of a cake?

[Rude-boy]

jamesb300]]Edited by Eric Mc on Thursday 18th March 08:26[/footnote said:

Was that the issue over the Jaffa Cake - whether it was a biscuit of a cake?

Resolved by the defendants brining in a number of 12" Jaffa Cakes to prove that those in the normal packets were just the same cakes, but on a smaller scale

[Eric Mc]

jamesb300 said:

Eric Mc said:

Don said:

AndrewW-G said:

zero rated items (food, children’s clothing etc) go from 0% to 10%

Political dynamite, that. Putting it on food would cause absolute outrage. And rioting. Don't forget the rioting. We haven't had that yet and no recession is complete without it. So maybe they will do it so we can have the rioting.

You would be surprised how many "food" items are already Standard Rated for VAT purposes.
The difference in VAT treatment between differing classes of food causes all sorts of technical and other issues and takes up a surprising amount of retailers' time and effort in arguing over such matters.

A huge number of VAT cases have been triggered by arguments over whether a certain type of biscuit or a certain type of crisp was a "food" or a "confectionery".
Other rows have arisen over whether a supply of food was "a normal supply of food" or a supply of "hot prepared food".

Maybe just bringing in a flat 10% for ALL foodstuffs would be better all round.

Edited by Eric Mc on Thursday 18th March 08:26

Was that the issue over the Jaffa Cake - whether it was a biscuit of a cake?

The Jaffa Cake case is the most well known. There have been many others.

[Diderot]

Parrot of Doom said:

Eric Mc said:

Because people use the VAT received from their customers to finance their expenditure - which is, of course, going to compromise their position when the time comes to pay over the VAT they have collected.

Or, in many cases, the VAT they're expecting to receive from their customers doesn't arrive because just about everyone in business now thinks that they can take 3 months to pay a bill that should be paid in 30 days.

Edited by Parrot of Doom on Thursday 18th March 12:59

Ain't that the truth unfortunately. Happening more and more often.

[Mermaid]

AndrewW-G said:

I wouldn’t be surprised to see the 17.5 rate go to 20% and currently zero rated items (food, children’s clothing etc) go from 0% to 10%

Stage 1 has to be VAT at 20%, VAT on food is not palatable.

[thinfourth2]

Rude-boy said:

jamesb300 said:

Was that the issue over the Jaffa Cake - whether it was a biscuit of a cake?

Resolved by the defendants brining in a number of 12" Jaffa Cakes to prove that those in the normal packets were just the same cakes, but on a smaller scale

A giant Jaffa Cake?

Would that count as bribing the judge?