VAT Hike!

[squirrel_hunter]

Originally Posted by Milky Bar Kid

Think a lot of the shops will swallow the increase up. Fingers crossed

Nope they will just put the price up to 'reflect the VAT rise' which will also include a little bit more. The same way as the VAT reduction. On the high street the price went down slightly before people started to forget and the price remained the same, a nice little earner for the shops as its only when you hit economy of scale do the changes have a noticeable difference.

Alot of suppliers generally increase their prices anyway in January. Ive already been given a couple of notifications of rises for January.

TBH the Vat when it went down to 15% hardly had any impact, it will be the same this time unless your spending out on a new car etc.

BTW if you want a good deal on a Shoei drop me a PM.

[G]

Unless you are spending thousands... 2.5% is feck all in reality.

£25 on a £1000 item is not going to break the bank, even less so for cheaper items.

Are helmets exempt or zero rated? Will have an impact on whether they can claim back any of the vat. If you sell exempt items only you cannot claim the vat back, but if it is 0%, then you can claim the vat back.

this will affect whether they have to increase their prices to maintain their profit margins. I may search for this now.

Answer:

They are zero-rated when they comply with one of the following standards:

• British Standard (BS) 6658:1985 (it will be marked with a British Standard 'kitemark'); or
• UNECE Regulation 22.05 (it will be marked with a UN 'E' mark - the first two digits of the approval number will be '05').

Therefore - despite the items being zero rated, the manufactorer can still claim back the VAT on things used in their manufacture because you do pay VAT on helmets, but at 0% and this is different to an exempt item.

There are some goods and services that are zero-rated. This means that they're taxable for VAT, but the VAT rate is zero per cent. Sometimes the reduced rate only applies in certain circumstances, or it may depend on who the customer is. It's important to read the detailed rules.
If you sell zero-rated goods or services, you can generally reclaim VAT on any purchases that relate to those sales. This is in contrast to if you sell only exempt goods or services, where you cannot normally reclaim VAT on your purchases - see the section on when VAT mustn't be charged.
If you sell or otherwise supply zero-rated goods or services:

• you charge VAT at zero per cent - so there's no charge, but you must show VAT information on your invoice
• you enter the transaction into your VAT accounts
• you include the value on your VAT Return
• you may be able to claim back the VAT back on related purchases

The above referances are all from the HMRC website. - Therefore we shouldn't see any increase due to VAT.

However, inflation is at 3.3%, (target is 2%) so you may well see an increase to reflect this.

Originally Posted by G

Unless you are spending thousands... 2.5% is feck all in reality.

£25 on a £1000 item is not going to break the bank, even less so for cheaper items.

Sooo, the new VAT rate will be 20%....

You spend £100 and £20 goes to HMRC, forgive me but that's a big feck all, when added to the rest, the money grabbing barstewards get

[G]

Originally Posted by Teejayexc

Sooo, the new VAT rate will be 20%....

You spend £100 and £20 goes to HMRC, forgive me but that's a big feck all, when added to the rest, the money grabbing barstewards get

Tax is tax... It's always been there... A 2.5% increase IS feck all and will be hardly noticeable on what we already pay. It's only an extra £2.50 on a £100 spend.

And it's defo feck all compared to where I am at the moment... For example 189% tax on car sales... I was sat in a £5k (uk price) Hyundai today, the bloke had paid €18k for it.

If You think a 2.5% increase in luxury tax here is bad then you are blinkered as we have it very easy compared to the rest of Europe.

Originally Posted by EssexDave

Are helmets exempt or zero rated?

HMRC site says zero rated

Originally Posted by Holdup

HMRC site says zero rated

Please re-read my post

Originally Posted by EssexDave

Please re-read my post

I only read the question

Like has already been said, 2.5% inc is nothing in the grand scheme of things. and although it is not much money to you and i on the every day t hings when you look at it being £25,000 per £1m on a national level it is going to go a long way towards sorting the mess this country is in at the moment.

It wont last for ever, once we are back into good times again things vat will go back down or tax in other areas will drop, one or the other.