VAT change to 15%

[hayesey]

So, does anyone care about this? 

http://www.hmrc.gov.uk/pbr2008/measure1.htm

Standard 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!

[Max]

I must remember to change all the invoice payments to 15%!

[cam_d]

i work in the granite house which is a gift shop ( www.giftmonger.com) up here in fort william and my boss was saying to us all we would have to change the price of all 20 000 products, i was the only one not to fall for it the rest were like... awww shhit, its not gonna make a difference to us we will get arsey customers moaning but there arnt many other shops here so they dont have a choice, i think there is a page on the goverments website with a paragraph saying to retailers they dont have to change the prices at all? il try dig it out

[hayesey]

you don't have to change prices but you will have to change the VAT amount charged to customers and VAT paid to the government. 

[GSBellew]

Meh, I think your government did things better than mine to be fair.

We're getting a 0.5% VAT increase from the 1st, putting our VAT rate to 21.5% while 5 miles up the road its dropping to 15% extra 8c went on petrol in October, 1% additional levy on all income from 1st Jan, car tax is up something like 10% again top band is over €2,000 FFS 

Just a wee rant 

PS, if you think handling one VAT change is fun, I do the accounts for our Irish Euro and Stg companys, and for our UK company, so all three sets of books have VAT changes next week 

[Phil]

All seems a bit silly really.

[jimbugalee]

I don't get it ..... surely the government thought of all this and they still went ahead?! hmmmmmm

Just an invoicing change from my end and reminding all the people who invoice us to change to the lower rate.  They'll never do it right!

[giorgio]

I only just got round to reading the full Pre Budget Report.

The Gord Giveth and the Gord Taketh.

As you guys say the menu costs of the change are ridiculous, especially since VAT is going back up

He has began to impose heavier taxes on those who earn £150k per annum. In hard economic times its difficult to make money and people are going to be demotivated to put the extra hours in knowing Gordy B & Eyebrws are waitigng to steal the money of them.

On the plus side - global warming seems to have stopped 

[DKnight]

this country is shite.

I know why not say, we are going to cut your council tax by 25%

actually do something that people will think, "fuckin hell ive got a nice spare sum of money here"

Make people actually happy with a cut?

the vat cut is a joke, they really, really are retarded people.

I hope i have got my shit together by the time of the increase and ready to move abroad

[giorgio]

I hope i have got my shit together by the time of the increase and ready to move abroad

where you heading dude?

the grass is always greener etc

[juan]

lol 2.5% is shit

[juan]

At least i can rest easy at night knowing that a fair chunk of my student loan is going towards building my mk1 g40 

[DKnight]

im hoping to go to france or maybe australia, unsure really

got relatives in both and they dont get cunted like we do

has anyone ever sat down and looked at their outgoings?

i did it and it nearly made me sick, and they say robin hood is dead...

[hayesey]

don't Australians pay even more tax than we do?

[hayesey]

but they do have fucking massive killer bugs though.