Reduced Vat on Motorhomes

[brayn]

My point was about the rate of VAT to apply, not a micro economic discussion. Ultimately, the market decides what the price of a good shall be unless the the seller is a price maker. Given the current constraints on sellers of non essential goods,I think it unlikely that suppliers will see this as an opportunity to increase prices. Most will be happy to continue selling goods at the same margin whilst the market is stimulated (however mildly) by an overall decrease in price to the end user.

My use of the fractions and percentages was an attempt, plainly misguided, to be of some assistance.

[BGD]

Brian Kirby - 2008-11-26 1:03 PM

brayn - 2008-11-26 11:22 AM

bob b - 2008-11-25 5:13 PM

Bugger !... I ordered a Gaslow refillable system yesterday.

Still, its only money....

All is not lost. The basic tax point is when the goods are supplied or collected by the customer or become available to the customer. If they charge you 17.5% I would suggest to them that they check the above mentioned tax point with their accountant. Or, for a reasonable fee..... Incidentally, if you want to find the VAT included in the selling price, multiply by 7/47 for 17.5% and 3/23 for 15%. I lectured in accountancy at professional and degree level and found that out of a class of 30 about 2 people would know about 'grossing up' (that the VAT in £117.5 is not 17.5% but (17.5*100)/117.5 %). They were usually the ones who ultimately did very well.

Yes, but despite all those fractions and percentages, you do seem in danger of overlooking the central point.  It is the seller who decides the retail price of a good, and not the rate of VAT.

If the rate of VAT changes, there is no obligation upon the seller to reflect that change in his selling price, because he, and he alone, has to account to HMRC for the VAT.

All he is obliged to do is pass on to HMRC the correct amount of VAT, relative to the actual selling price.  If the customer doesn't like the seller's price, he always has the traditional remedy.

Bingo!Exactly so Brian.

[Brian Kirby]

Oh dear, I now seem to have caused offence.  Not intended. 

I just felt that the precision of the calculations might be taken to imply that reductions would result, rather than that they might result.  I'm sorry if that was unclear.

My point, simply, is that whether or not one calculates what (arguably) should be the new price of a good after the VAT reduction, it will still be up to the seller whether or not he passes on the saving.

Yes, indeed, the market will decide.  Hence my reference to the customer (the market) resorting to the traditional remedy: i.e. buying elsewhere. 

I agree that the reduction is more likely than not to be passed on.  However, as there is no obligation for sellers to do so, this will inevitably vary from place to place, and seller to seller.  Buyers, therefore, need to be vigilant.  That was the crux of the point, also intended to be of assistance, that I wished to make.

[net-traveller]

kelly58 - 2008-11-25 4:46 PM

>I would like to know more about the new Gov savings scheme because if I heard him right he said with the new saving scheme to be implemented for every £1 saved the Gov will add 50p so doe's that mean if I give the Gov 50k it will auomatically increase to 75k if so I will be the 1st through the door  tooooooo good to be true me thinks

I'm late again.There is some info on the savings scheme here -http://news.bbc.co.uk/1/hi/business/7746952.stmBasically it's not for the likes of most of us, now there's a surprise. ;-)

[Itexuk]

And more details here re Gateway savings

http://www.hm-treasury.gov.uk/saving_gateway.htm

[handyman]

whats going to happen to poundland (?)

[davenewellhome]

handyman - 2008-11-26 12:25 PM

 

davenewell@home - 2008-11-26 7:06 AM

 

So your £1.99 tin of deodorant will still be £1.99 instead of £1.95.

 

 

D.

 

surely everyone needs deodorant, so it should be zero vat :D ;-)

 

Never use the stuff meself, I prefer to smell like a man :D :D

 

D.

[flicka]

Itexuk - 2008-11-26 3:44 PM

 

And more details here re Gateway savings

http://www.hm-treasury.gov.uk/saving_gateway.htm

 

Extracted from the above site

"The Saving Gateway is a cash saving account for working age people on lower incomes. It provides a strong incentive to save, through a Government contribution for each pound saved.

 

Eligibility for an account will be passported from the following qualifying benefits and tax credits:

 

income support;

jobseeker’s allowance;

incapacity benefit and employment and support allowance;

severe disablement allowance;

working tax credit (with income below a specified level); and

child tax credit (with income below a specified level).

Accounts will run for two years and will be offered by financial institutions such as banks, building societies and credit unions. The Government contribution of 50p for each pound saved will be paid at the end of the accounts. "

 

Being on a reasonable income but receiving one of the above benefits, I doubt I am eligable.

I am sure there will be some means testing applied, for this

 

:-( :-(

[handyman]

come on rupert, i give you reply and you dont come back with anything, i expected more from you ;-)

[handyman]

All in all, I'm very impressed with most companies. Instead of changing the ticket price, most deduct the amount off at the till. This way has saved a lot of costs changing all the printed prices.