Possible VAT cut & website prices?

[anonymous-user]

Assuming this VAT cut happens, what will the deal be with published prices on websites? Will they also expect shops etc to redo all the prices?! Have they really thought this through?!! Madness, all to save pence on the average purchase.

[_Voyager_]

Its not the governments fault if systems cant cope with a simple constant change. It should be a 5 minute job if its done properly.

[IainT]

Going to make a massive difference to my weekly shop... we spend ~£100 on food. That's going to plummet to £97.50.

I think we'll spend the savings on a skiing holiday...

Fecking retards... bugger all noticable saving to sink UK Plc £12bn further into debt each year.

[Plotloss]

From the date of change you'll have to change all your prices, as will everyone.

Fortunately for most people its changing 1 value and then reprinting labels.

[anonymous-user]

_Voyager_ said:

Its not the governments fault if systems cant cope with a simple constant change. It should be a 5 minute job if its done properly.

5 minute job? Really, would you like to come around to my shop and change hundreds of price labels?

[pgilc1]

Dave_ST220 said:

_Voyager_ said:

Its not the governments fault if systems cant cope with a simple constant change. It should be a 5 minute job if its done properly.

5 minute job? Really, would you like to come around to my shop and change hundreds of price labels?

Will you really change the prices though or absorb the 2.5% as extra profit?

[anonymous-user]

pgilc1 said:

Dave_ST220 said:

_Voyager_ said:

Its not the governments fault if systems cant cope with a simple constant change. It should be a 5 minute job if its done properly.

5 minute job? Really, would you like to come around to my shop and change hundreds of price labels?

Will you really change the prices though or absorb the 2.5% as extra profit?

I'd say for many they will absorb the 2.5%, it will cost a fair whack in time etc to change all retail price labels, the retailer will want to claw that back. Only time will tell.

[Plotloss]

It depends on how they're setup more than anything.

In the webshop I'm setting up at the minute its a less than 30 second job, change one value, its reflected across all prices instantly.

Obviously more of an overhead with physical labels.

[Greenie]

IainT said:

Going to make a massive difference to my weekly shop... we spend ~£100 on food. That's going to plummet to £97.50.

I think we'll spend the savings on a skiing holiday...

Fecking retards... bugger all noticable saving to sink UK Plc £12bn further into debt each year.

Plently of food in the Supermarket is exempt from VAT anyway.

[_Voyager_]

Not forget there is VAT on petrol as well! 2.5ppl makes a difference to me.

[Simpo Two]

Futhermore, WHEN is it dropping to 15%?

[Plotloss]

Simpo Two said:

Futhermore, WHEN is it dropping to 15%?

We dont actually know it is dropping yet.

He's not made his speech has he?

[anonymous-user]

Simpo Two said:

Futhermore, WHEN is it dropping to 15%?

IIRC the dross will start about 3pm.

[edb49]

Say the date of change is 1st December 2008:


1) You issue an invoice on 30th Nov 2008 for £100+VAT, e.g. £117.50
2) Client cancels on 1st Dec, so you credit £115.00

Your accounting system now says the client owes you £2.50. What a pain.

[JustinP1]

So shops are going to go around and relabel all of the £29.99 inc VAT prices to £29.24?

I just can't see it myself...

It has just made a nightmare in the busiest retail time of the year... My bet is that it will just be absorbed.

Furthermore, I am on the flat rate VAT scheme. We keep the VAT charged but pay a fixed percentage of turnover - unless they have thought ahead to reduce that - which is unlikely - that has just cut our turnover by 2.5%. Cheers Ali.

[Plotloss]

Eric reckons they'll redo the flat rate at the same time.

[paoloh]

JustinP1 said:

So shops are going to go around and relabel all of the £29.99 inc VAT prices to £29.24?

I just can't see it myself...

It has just made a nightmare in the busiest retail time of the year... My bet is that it will just be absorbed.

Furthermore, I am on the flat rate VAT scheme. We keep the VAT charged but pay a fixed percentage of turnover - unless they have thought ahead to reduce that - which is unlikely - that has just cut our turnover by 2.5%. Cheers Ali.

But by being absorbed, we are "spending" more....

[dougc]

_Voyager_ said:

Not forget there is VAT on petrol as well! 2.5ppl makes a difference to me.

Seems like a good time to tack on that 2ppl duty rise that was put off earlier in the year doesn't it?

[paoloh]

What about builders that have bought goods for a job but won't be billing client until after rate change?

[anonymous-user]

paoloh said:

What about builders that have bought goods for a job but won't be billing client until after rate change?

Why would they be any worse off? They reclaim the VAT on their purchase invoice & apply VAT on the sale invoice. VAT isn't anyones ££ other than the governments!