The VAT Factor

Re: The VAT Factor

They was looking at increasing it to 20{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} before the recession it was just delayed that’s all :rolls:

Re: The VAT Factor

Martin wrote:Well I never, it just goes to show my memory ain’t what it was and if I had thought about Googling up the answer I may have got my facts right…hey ho!

Not so Martin, most of the top Google results for ‘historic vat rates’ come up with precisely what you posted, some of them almost word for word. 😉

Jim.

Re: The VAT Factor

Martin wrote: When it was introduced in 1973 there was a 3 tier system 0{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d}, 8{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} & 12.5{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d}. However in November 1974 the VAT was set at 25{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} but only on petrol. The VAT on household goods was just 15{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d}.

As your post cast doubt on the veracity of my statement and called my memory into question I felt duty bound to respond. 🙂

However, if you are telling me that the above figures from your post came from the off top of your head then I for one believe you implicitly.

In fact by mentioning the damage done back in the 70’s I was actually reinforcing the main thrust of your first post. 😉

Nothing personal at all. 8)

Re: The VAT Factor

But as in the 70’s ( did I mention 25{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} vat in the 70’s ) 😀 It will be on all parts and labour as well.

Unless of course you are able to trade under the current vat threshold. 8)

Re: The VAT Factor

You have problems, the way I see it with that happening Madmac…

You have a bunch of people out there determined to produce the cheapest machine, another to sell the cheapest machine and to force the production of the cheapest machine and a group determined to buy the cheapest machine making the seller get the cheapest and the producer produce the cheapest.

The quality and repairability are of no concern. Until it goes wrong, then it’s terrible and it’s everyone’s fault bar the people that asked for the cheapest until the blame works its way back to the organisation that stamped their name on the front.

But I digress (again before someone says it).

If the VAT does go up, so what? If it goes down, so what?

In the grand scheme of things, outside of government that claws in more taxation, does it really make a jot of difference? And, if government doesn’t claw more tax money in to cover the expectation of every minority lobby group and the general public that want better and better services then they’d just have to find another way to get their mitts on the cash anyway. In the end though that is pretty much irrelevant as there’s only one place they can get money for all these services and legislation which leads to monitoring, from us, the taxpayers.

They have no other source by which to raise revenue.

Unless of course someone wants to advocate invading France or Spain or, to at least attempt it again. Or I guess Argentina might be looking tasty but, we’ve already learned the cost of colonies and we didn’t much like that.

Going on the assumption that such action is a non-starter, it’s coming out our pockets. End of.

So, every bit of better service from local or national government, legislation, monitoring or whatever else that we request from government costs us money.

I guess what I’m saying is that, we’re our own worst enemies at times and often we find ourselves or people around us sitting nodding about some subject or another and agreeing that “something should be done about that” or that “there ought to be legislation to stop…” and yet, every time we forget that someone, somewhere has to do it and that the money to do it has to be found. Invariably, that’ll be from you, me and every other taxpayer.

What politicians often do is sugar coat the bitter pill.

They got caught lying, get vilified and we all want to change to the next bunch that will sugar coat it for us. And on and on the cycle goes.

So if they punt up VAT it will make little difference to business.

It will put up prices in the short term, allow many to claw back a bit of margin until the equation in paragraph two kicks back into effect after the shock wears off.

Salaries rise to compensate.

Rates rise to compensate the salary increases.

We all get used to it and we move on and life returns to normal.

In other words, in my humble and, admittedly non-expert opinion, in the medium to longer term it will make absolutely no difference whatsoever to life as we know it.

The only advantage, as has been rightly pointed out, is to non-VAT registered traders who will gain an advantage for a short while, until they too suffer the increase in costs of all they have to buy as well and as much as everyone else.

K.