VAT Cut

[squirrel_hunter]

Originally Posted by punyXpress

How much did Marks & Spencer's sales go up last week when they cut their prices by 20% ?

How much did they put the price of the goods up the night before they reduced them by 20%?

I would hate to dispel a few myths about retail, but offers are very often not always what they appear to be...

if prices dont drop then people wont spend simple as. dont matter how much they say vat is dropping its if people decide they can now afford something.

They should have given everyone on the electoral register a lump sum share out of the 12 billion they reckon this cut will cost. I reckon we'd all be in for around 250 quid

[Stu]

Originally Posted by SV-net

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?

If the business is VAT registered then they will be able to recover all of whatever VAT they have paid.


The new rate will be charged at the time of sale to the consumer.

[Stu]

Originally Posted by $tevo

They should have given everyone on the electoral register a lump sum share out of the 12 billion they reckon this cut will cost. I reckon we'd all be in for around 250 quid

Genius
I reckon it would be more like £400 if there's 30M on the register
People would notice that, not 2p here 4p there or £7 on £500.
Is that what they reckon £12Bn?

I'm sure I heard that figure mentioned this morning. On Sky news I think

Most of the cost of this is in business spending, not consumer spending. As pointed out, the difference to the price of consumer goods is fairly minimal, but the difference in business-to-business transactions will be huge and irrelevant (input/output all accounted for separately and reclaimed or paid to HMRC as appropriate)

It annoys me that it is being presented as "more money in your pocket." It's not - I will have exactly the same in my pocket, but goods will be very slightly cheaper.

Originally Posted by wyrdness

As I don't have a mortgage, I haven't benefited from the interest rate cuts,

I do have a mortgage but i still havn't benefited from the interest rate cuts because very few of the thieving gits have passed any of it on.

Originally Posted by squirrel_hunter

How much did they put the price of the goods up the night before they reduced them by 20%?

I would hate to dispel a few myths about retail, but offers are very often not always what they appear to be...

IIRC, the law regarding "offers" in retail are that the product(s) being put on offer must of been a certain price for 28days previous to the offer. The offer also has a time limit imposed on it. At least, that's the way it was when I worked in retail. Retaillers also have to prove their prices prior to the offer starting (not difficult though in practice).

Although, there are ways to get around that, which people like DFS are very adapt at. Things like only putting half of your stock on offer at any given time, and rotating accordingly.

Originally Posted by Foey

I do have a mortgage but i still havn't benefited from the interest rate cuts because very few of the thieving gits have passed any of it on.

I have a mortgage & have benefit hugely so far. I'm one of the lucky ones. Within the last few months, my mortgage payments have pretty much halved.

They've already said when the economy has "Recovered" theyre putting VAT back up again...