- This topic has 12 replies, 8 voices, and was last updated 15 years, 3 months ago by
.
-
Posts
-
According to the HSBC it might be for us, the repairers… story here
More great news HERE
But, generally the sentiment seems to be that people will be watching what they spend and, what they spend on, very closely this year. Which could be good news for us as well.
K.
Re: VAT Rise – Good News?
A Survey? wrote:Nearly half of Britons claim they would try to get a major electronic item repaired if it broke, rather than splashing out on a new one, a survey has suggested.
Quoting the bleeding obvious initially springs to mind on this one. :rolls:
Major appliances by definition cannot be picked up and thrown in the wheelie bin and consideration as to the viability of cost to repair v’s replacement a paramount decider for any right-minded owner.
Beyond that and into 2011, and taking in account that VAT is now set at an all time high of 20{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d}, I cannot see any change in trading based on current trends. Namely, Joe Public will all the while choose high profile brand over price as the primary option, price comes a close second, features and availability from stock availability hold out in third place.
The only good news I can forecast as far as servicing/repairs and the 2.5{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} VAT rise is concerned is that those (like me) that are NOT VAT registered will score simply by keeping their call-out and spares cost down overall. Or, in other words, the nucleus of the servicing/repair trade in the UK, (i.e one man bands) will continue to find market. Multi-engineer companies will continue to find work tough going and the 0800 Repair/Repaircare’s of this world will trip over themselves and fall in no short order in the fullness …..
And as the “£73 average” quoted has to be the cut-off for most as to the viability of repairing. So the future, even for one man bands, is to put it mildly, volatile.
It doesn’t take much figuring out that white goods these days are, lets face it, cheap! …………now go figure the mind-set of the average punter when their machine goes belly up and then go figure how you can capitalise on their dilemma…………? If you can average £73 take from that then you have no immediate worries toward the future and the joy of 20{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} basic rate VAT…..live long and prosper. 8)
Re: VAT Rise – Good News?
This whole vat rate rise imo has/is being over done by the media, we all have to pay it as consumers , period (we have had quite a few months to know this was going to happen). We have enjoyed a low vat rate in comparison to many other EU countries for years now and there was an inevitiability (deficit or not) that it was going to be put up. We should think ourselves lucky that its only 20{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} and not 25{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} like ireland !
As of yet i havent had any one stop doing a repair or buying an appliance becasue of the rise (£11.00 per £500 rise isnt a deal breaker imo) Fuel is the bug bear £104 to fill my van up this morning but then i can claim the vat back 😉
JeremyRe: VAT Rise – Good News?
had a couple of comments over my vat inclusive rate now being £70.80 as opposed to last week when it was £69.33 which drew no comments or intakes of breath.
Re: VAT Rise – Good News?
Hi
Placed an order with BSH last week 30/12/10 for parts. Today parts arrive with VAT marked at 20{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d}. Print out from Eshop order confirmation on 30/12/10 shows VAT at 17.5{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d}. Paid for parts when ordered on 30/12/10 by card so will wait and see what they do about it.
Mike
Re: VAT Rise – Good News?
had a couple of comments over my vat inclusive rate now being £70.80 as opposed to last week when it was £69.33 which drew no comments or intakes of breath.
I know… My normal Labour charge was £42 plus the VAT.
For now I’ve put it down to £41 plus VAT just to keep it under £50 total.I will see how it goes… I will have to counteract it by a pound extra here or there on parts and also not be so kind, to some customers, to drop my Labour to £39 plus VAT on the quicker jobs!
Re: VAT Rise – Good News?
Martin wrote: VAT is now set at an all time high of 20{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d},
WRONG…
Memory not what it was eh Martin. 😉 😀
http://www.ifs.org.uk/ff/vat.xls
25{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} on a whole range of goods and services including petrol in 1974, up by 17{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} in one hit from 8{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} to 25{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} and Ed Milliband has the cheek to winge about a 2.5{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} rise. :rolls:
Jim.
Re: VAT Rise – Good News?
iadom wrote:
Martin wrote:
VAT is now set at an all time high of 20{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d},WRONG…
Nowt wrong with my memory Jim, I recall the previous thread and thanks indeed for digging it up again. The fact still remains that VAT is now set at an all time high of 20{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d}.
I welcome the new rate as it’s much easier now to work out the VAT on goods and services without needing a flippin’ calculator. And thrilled at not having to hand over any of my hard earned to the VAT man. 8)
Re: VAT Rise – Good News?
You dont have to worry about the VAT Martin as your not vat registered?
I think those that are not vat registered will suffer more than most as they can not retrieve the 20{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} back, average washer sale through my shop is about £400, so a small rise of £10 – not really going to bother anyone. The worst hit will be my customers buying a complete appliance set which averages about £3500, rise there of £87.50, again not a deal breaker. Even worse my customers buying kitchen , appliances and fitting average £11000 rise of £275.00, not massive when your spending £11k, i dont think its going to affect many local dealers as its the service we sell and not always the best price.
The biggest killer at the moment is rising fuel costs and fixed costs such as insurance etc, that is what i will be working on controlling, trying to be more efficient and getting full value out of every resource.Re: VAT Rise – Good News?
Martin wrote:
Nowt wrong with my memory Jim, I recall the previous thread and thanks indeed for digging it up again. The fact still remains that VAT is now set at an all time high of 20{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d}.
Must be something wrong with my maths. ❓
Please tell me how a vat rate of 20{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} is higher than one of 25{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} :con:
Re: VAT Rise – Good News?
iadom wrote:Please tell me how a vat rate of 20{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} is higher than one of 25{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} :con:
You won’t let go of this one Jim will you? 🙂 We had the same exchange on the previous VAT thread too I recall, all good fun.:wink:
As well you know the current standard VAT rate of 20{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} is the highest it has ever been in the UK. The 25{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} rate you refer to was not the standard rate but regarded as a ‘higher’ rate, long since dead and buried in favour of a simpler ‘one rate fits all’ system adopted by HMRC.
But by the same token one could argue that the new rate of 20{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} will effectively have a greater impact than the 25{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} did in yesteryear. By the simple fact that now everything that is VAT’able is tacked on to the overall cost of goods and services @ 20{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} whereas in 1975 the majority was set at the basic rate of just 8{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} and we got by on that a lot of the time. (I was a VAT registered business from 1975 until Feb 2005 – been there, done that, no T shirt though only scars.)
Re: VAT Rise – Good News?
Ahhh, so now you are actually telling the truth by qualifying your statements. 🙂
Nowhere in your earlier posts does it mention the ‘standard rate’. You just blithely stated twice that VAT is now at its highest level ever which was not true. 😛
The things that directly affect all of the posters in this thread, fuel, repairs, new appliances etc were all subject to VAT at 25{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} in 1974,5,6 so I stand by my belief that an 2.5{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} increase now will have a minor impact compared to the massive 17{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} increase then.
If I read the linked thread correctly you were unaware or had forgotten about the 25{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} rate until I jogged your memory. 😉
Jim.
- You must be logged in to reply to this topic.