So, does anyone care about this?
http://www.hmrc.gov.uk/pbr2008/measure1.htmStandard rate VAT is expected to be changed to 15% (the lowest allowed under EU law) taking effect on 1st December for 13 months. The idea is supposed to be that retailers will reduce prices and it'll encourage people to start spending again.
But my thoughts:
- vast majority of companies wont change prices as it'll cost too much to implement, what's the point when it'll make something currently £9.99 cost £9.78, is it enough for people to really care? Will it just make prices confusing?
- it'll cost companies loads to test out invoicing, online shop etc...etc... software and systems. Already hearing about a bit of a repeat of the Y2K panic and sites like this are appearing:
http://www.vatchange.co.uk I've spent most of today testing my works systems to make sure they can cope. Since the last VAT change was something like 1990 there's going to be LOADS of bits of software that people use that is going to fuck up. And there's only a week to make sure that any computer program handling anything to do with VAT is going to be OK.
- after 13 months, VAT is going to go sky high to make up for it.
- fuel duty raised by 2p in a few days, tax on cigs and booze going up too. All to offset the losses on general VAT.
Is it really going to make people spend money more? I know it wont make me spend more, it makes me feel like we're going to be in a recession for a long time, it'll be lasting even longer now when the economy recovers so the government pay back all the loaning they're doing now!
Bad times!