VAT on cars used to be 8% - can you imagine?

[CoolHands]

I found the original bill of sale for my 1978 Honda Civic - VAT was 8%. Now it's 20%. I mean, isn't that crazy? In thirty years it;'s gone from 8% to 20% (that's an increase of 40%). What's so different from the late 70's to now?

Edited by CoolHands on Sunday 22 January 22:00

[AndrewW-G]

A massive, over spending and badly managed public sector, coupled with out of control benefits claims from people who have no intention of ever paying into the system. . . . . . blowing tens of billions each year on the EU and foreign aid isn’t helping much either

[martin84]

CoolHands said:

1878 Honda Civic

I knew Honda had been making the Civic for some time but fk me.

[Dracoro]

CoolHands said:

In thirty years it;'s gone from 8% to 20% (that's an increase of 40%)

LOL Serious maths fail

[martin84]

AndrewW-G said:

A massive, over spending and badly managed public sector, coupled with out of control benefits claims from people who have no intention of ever paying into the system. . . . . . blowing tens of billions each year on the EU and foreign aid isn’t helping much either

Does that have anything to do with the OP's Honda Civic or is that just a compulsory thing to say in every PH thread?

[_gez_]

anonymous said:

[redacted]

You are not kidding.

[Sir Bagalot]

CoolHands said:

I found the original bill of sale for my 1978 Honda Civic - VAT was 8%. Now it's 20%. I mean, isn't that crazy? In thirty years it;'s gone from 8% to 20% (that's an increase of 40%). What's so different from the late 70's to now?

Edited by CoolHands on Sunday 22 January 22:00

But there was also a Car Tax of 10%, which is now gone.

Remember, only two things are certain in Life. Death and Taxes

[12gauge]

CoolHands said:

I found the original bill of sale for my 1978 Honda Civic - VAT was 8%. Now it's 20%. I mean, isn't that crazy? In thirty years it;'s gone from 8% to 20% (that's an increase of 40%). What's so different from the late 70's to now?

Edited by CoolHands on Sunday 22 January 22:00

Thank Thatcher for that - tax strategy was to shift tax from direct taxation (ie income tax) to Indirect taxation (ie consumption taxes) for 'incentivization' purposes.

In 1979 we also had the lowest fuel duty in the EU/EC, believe it or not. I havent done any research into it, but its probably the same story with alcohol and Tobacco too.

Then labour came along and 'kept the basic rate of tax the same' and raised NIC a few times instead. Because of course thats definetly not a tax on income. And thus now we have the worst of both worlds. Yay.

[cpas]

anonymous said:

[redacted]

150% Shirley?!

[hidetheelephants]

Sir Bagalot said:

But there was also a Car Tax of 10%, which is now gone.

Remember, only two things are certain in Life. Death and Taxes

There's also the matter of Healy's frankly alarming income tax rates.

[AndrewW-G]

martin84 said:

AndrewW-G said:

A massive, over spending and badly managed public sector, coupled with out of control benefits claims from people who have no intention of ever paying into the system. . . . . . blowing tens of billions each year on the EU and foreign aid isn’t helping much either

Does that have anything to do with the OP's Honda Civic or is that just a compulsory thing to say in every PH thread?

Read the OP's post again, his question was why is VAT now 20%, when it was "just" 8%

[balls-out]

Yes but look at income tax.
In 1974, the top tax rate on earnings was 83%
Unearnt income was taxed at over 90% ISTR

[LuS1fer]

As has been said, there used to be a 10% car tax so the 8% was on the price and 8% of the 10% so in reality, over 18%. I seem to recall they also had a tired system of VAT for luxury goods at some point too.

There is also the question of personal tax allowances etc at the relevant ties.

[CoolHands]

lol in my defense I was drunk at the time of writing!

It was 8% though

[Ian1976]

At least we don't have to pay VAT on used cars (yet!).

[btsidi]

Ian1976 said:

At least we don't have to pay VAT on used cars (yet!).

AFAIK the dealer does pay it on the "profit" though

[LuS1fer]

btsidi said:

AFAIK the dealer does pay it on the "profit" though

Yes he does.

[AndrewW-G]

LuS1fer said:

btsidi said:

AFAIK the dealer does pay it on the "profit" though

Yes he does.

And it's factored into the margins . . . . so it IS charged on used cars, just not the entire amount!

[Ian1976]

Well yes, of course its paid that way. I should have made my original post clearer.

I actually meant that its good we don't yet have to pay it on private used car sales (it'll happen one day I reckon)

[Caulkhead]

How much was the total price for your Civic? Compare that to the average earnings and the amount of income tax paid in 1978 and then compare that with the same figures and car price for today for a true picture.