VAT Cut

[tigersaw]

Cant see it making any difference, the shops will boost their prices to absorb the saving.

Originally Posted by tigersaw

Cant see it making any difference, the shops will boost their prices to absorb the saving.

The shops won't boost prices when the VAT rate drops, they'll leave them the same and just profit more from it by paying less VAT to the govt. When the VAT rate goes back up they'll whack a chunk more on prices to compensate for it. Either way we, the consumer, loses out and the shops and govt make even more money out of it.

[tigersaw]

Originally Posted by Lozzo

The shops won't boost prices when the VAT rate drops, they'll leave them the same and just profit more from it by paying less VAT to the govt. When the VAT rate goes back up they'll whack a chunk more on prices to compensate for it. Either way we, the consumer, loses out and the shops and govt make even more money out of it.

exactly what I meant - boost (pre-vat) prices so the net ticket price remains the same

[squirrel_hunter]

Lozzo, I'm sure that is whats going to happen. The average Joe on the street won't see a blind bit of difference.

However it might benefit a small number of people, me for example. I'm a softie for a retailer, I'm betting (hoping) 17.5 is hard coded all over the place. Queue the crisis meeting Monday morning followed by the sound of overtime clocking up...

[embee]

General concensus seems to be that the rate cut is coming.

Don't know what world these characters live in, it won't make a blind bit of difference to Joe Public's spending will it?

Roll up, everything slashed by 1.5%, grab it while you can! Yeah, right.

The way things are, with possible redundancy etc looming over so many folks, we'll buy what we really need, everyday items, whether it's £1-99 or £1-94 matters not one jot. If you're looking at a new TV, £7 off a £500 item isn't going to suddenly make it affordable if it wasn't before.

We're all in the doodoo, it's only the depth that varies.

PS - that's not forgetting that the pound has lost 25% in the last 3 months, so imported goods are not going to be falling in price are they?

Originally Posted by embee

Roll up, everything slashed by 1.5%,

2.5%

Originally Posted by squirrel_hunter

However it might benefit a small number of people, me for example. I'm a softie for a retailer, I'm betting (hoping) 17.5 is hard coded all over the place. Queue the crisis meeting Monday morning followed by the sound of overtime clocking up...

That's where I'm breathing a huge sigh of relief that I didn't get it hard coded into our new system (that hasn't gone live yet!). It's been about 17 years since the last change, was it '91?

[punyXpress]

How much did Marks & Spencer's sales go up last week when they cut their prices by 20% ?
It makes Gordon's cut look pathetic, but the sting appears to be that they are raising Income Tax AFTER the next election - what a poisoned chalice that will be.
Hi Lou M
Could you PM me 7 random numbers between 1 & 49 ( inclusive ) ?
It might JUST solve one poor 8u99er's cash flow!

[squirrel_hunter]

The last change was quite some time ago, pre-dating any of my code. But I do know we have some provision to account for it at the till point (I discovered this a year ago and included it in a new system even though I said it will never be used!). However its some of the newer stuff that I wouldn't be to sure about...

What about all the small business importers paying vat who may have just purchased bulk stock for christmas selling. They will have paid recently the current rate and for sure they wont get a rebate/refund for it. Or does the import of goods fall into another vat rule?