VAT increase

[4988cc]

Four years, (17.5% + 15% + 17.5% + 20%)/4 = 17.5% VAT for 2008-2011. What was the bloody point? Surely just making it 20% two years ago would have started to have have an effect sooner?

/patently not an economist

[4988cc]

Kateg28 said:

My other half does have a limited company and it runs the fish and chip shop. Am not sure why the surprise though?

I just wouldn't have thought the turnover or profits merited the arseache (in terms of record-keeping, reporting requirements and associated accounting expense/owners' admin time etc) and associated tax burden of a Ltd. Co., which has the highest overall tax burden of all company structures if I'm not mistaken.

Still, he'll have chosen that business structure for a reason I'm sure, so there's no point griping about the tax burden involved in it.

[Kateg28]

There are reasons. He told me them. I fell asleep during that conversation.

[Fatman2]

rypt said:

Fatman2 said:

rs1952 said:

Fatman2 said:

It might make people think twice about cars though as another 2.5% on £30k will be significant.

Even spending £30k it won't make that much difference. I calculate it as an extra £638 and, if you're thinking of spending 30 grand on a car, I doubt you would be put off by it.

Eh, how come £638 ?

£30k + 17.5% = £35.25k
£30k + 20.0% = £36.00k

£750, although it's not the first time I've got my math wrong

£30k is the old VAT price, so non-vat price is 25.53k
With 20% vat it becomes 30.638k .. which is £638 more

ie: 30/1.175*1.2-30

Edited by rypt on Wednesday 5th January 12:42

Who are you to be making the rules up I was thinking of £30k + VAT and not £30 inc VAT

[rypt]

I am God.

[fido]

4988cc said:

Kateg28 said:

My other half does have a limited company and it runs the fish and chip shop. Am not sure why the surprise though?

I just wouldn't have thought the turnover or profits merited the arseache (in terms of record-keeping, reporting requirements and associated accounting expense/owners' admin time etc) and associated tax burden of a Ltd. Co., which has the highest overall tax burden of all company structures if I'm not mistaken.

Still, he'll have chosen that business structure for a reason I'm sure, so there's no point griping about the tax burden involved in it.

Most of my contractor chums (in the city) are Ltd. so i can't see why it wouldn't benefit a fish restaurant - still what do i know.

[nyxster]

rypt said:

I am God.

Are you VAT registered?

[rypt]

nyxster said:

rypt said:

I am God.

Are you VAT registered?

No, VAT for for lower plane peons

[thinfourth2]

Seeing that VAT is only on luxury goods

How long could you survive without any "luxury" goods?

[4988cc]

thinfourth2 said:

Seeing that VAT is only on luxury goods

How long could you survive without any "luxury" goods?

Like clothes for adults? I've often wondered why kids' clothes are VAT exempt and they're "essential", yet adults' seemingly aren't. Yet it's a crime to walk about everywhere naked. It's a bloody con.

[turbobloke]

4988cc said:

thinfourth2 said:

Seeing that VAT is only on luxury goods

How long could you survive without any "luxury" goods?

Like clothes for adults? I've often wondered why kids' clothes are VAT exempt and they're "essential", yet adults' seemingly aren't. Yet it's a crime to walk about everywhere naked. It's a bloody con.

Ferengi have the right idea...

[thinfourth2]

Lets have a naked protest!!!!!!!!!!!!!

[Eric Mc]

thinfourth2 said:

Seeing that VAT is only on luxury goods

Says who?

[Kateg28]

VAT is applicable on ladies sanitary wear. I don't think that sort of product is a luxury.

(My local paper did an article on the effect of the increase and showed what the new price of a joint of beef will be from local supermarket with the VAT increase - Not good research then....)

[DarrenL]

a colleague just paid £1.05 for a bottle of Diet Coke.... the by election on Thursday will be the first real test of how the new coalition Govt, and the VAT increase have gone down... unfortunately, Cameron hinted that the rise is here to stay...

[JagLover]

4988cc said:

thinfourth2 said:

Seeing that VAT is only on luxury goods

How long could you survive without any "luxury" goods?

Like clothes for adults? I've often wondered why kids' clothes are VAT exempt and they're "essential", yet adults' seemingly aren't. Yet it's a crime to walk about everywhere naked. It's a bloody con.

The problem with exempting 'essential' clothing is that it would make the complexity of the Vat system when it comes to food look like childs play.

[XitUp]

thinfourth2 said:

Lets have a naked protest!!!!!!!!!!!!!

Can we wait until summer?