VAT to be cut for a year

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Redandwhitedust said:
I bet if the cut VAT the majority will not pass it on at the till.

Its like when they announce a penny off a pint in the budget... the price still goes up!
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This!

You can bet summit that costs £999 today at 20% VAT (£833 pre VAT) will still cost £999 at say 15% VAT (£869 pre VAT) if it's selling well. Businesses will just increase the pre VAT price the customer doesn't normally see anyway or even those that do so click another £36 or 3.6%. Many businesses will only drop the price by using the reduced VAT is if they aren't selling something to try to boost the sale.
 
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Gillythedilf said:
I find the VAT rate at 20% stifles business massively.It knocks loads of domestic work on the head /creates a cash economy (especially in sunderland )

Shoe-Rack is correct in slashing the vat,it’ll help things out massively by things being cheaper
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Upping the registration limit to something like £200k might help smaller businesses in general and particularly construction related outfits and create a middle ground between the one man band cash jobber and a big vat registered outfit. Joe public could get big jobs like extensions etc done and actually get building guarantees etc and not have 20% on the price of the job. Might disrupt the market a bit short term like.
 
Fact Hunt said:
A better stimulus would be for the Conservative- supporting big businesses to stop deliberate tax avoidance and pay their fair share.
and those self-employed people who see any tax as purely voluntary.
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They’ve been fairly shafted throughout this mind.

EDIT: those SE people you speak about.
 
Goat Eyes said:
They’ve been fairly shafted throughout this mind.

EDIT: those SE people you speak about.
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Who have? the Cash-in- hand mob who thought they could have the best of both worlds?
or big business who can employ the best accountants and lawyers to help defeat the spirit of taxation?
CollingwoodFTM said:
It was 8% for most of my childhood until Howe increased it to 15%.
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Most of the largest increases in VAT have been instigated by Tory chancellors.
 
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Fact Hunt said:
Who have? the Cash-in- hand mob who thought they could have the best of both worlds?
or big business who can employ the best accountants and lawyers to help defeat the spirit of taxation?

Most of the largest increases in VAT have been instigated by Tory chancellors.
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There’s thousands, if not millions of legitimately self employed people who have missed out.

As an example, one of my friends / work associates has been employed until 20 months ago when he went self employed. He’s been self employed for 20 months and paid all taxes as he should. Because he was employed within the governments 36 month claim period they have deemed that the majority of his income comes from employment and not self employment so he’s entitled to nothing. Can’t get any of the grants available so has been placed on UC at about £40 a week. He’s now depleted all of his savings... 🤷‍♂️

To go from about £5k a month (before tax and expenses etc.) he is now on £160 a month.
 
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Goat Eyes said:
There’s thousands, if not millions of legitimately self employed people who have missed out.

As an example, one of my friends / work associates has been employed until 20 months ago when he went self employed. He’s been self employed for 20 months and paid all taxes as he should. Because he was employed within the governments 36 month claim period they have deemed that the majority of his income comes from employment and not self employment so he’s entitled to nothing. Can’t get any of the grants available so has been placed on UC at about £40 a week. He’s now depleted all of his savings... 🤷‍♂️

To go from about £5k a month (before tax and expenses etc.) he is now on £160 a month.
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That sounds terrible. Is there any way to appeal? Under those circumstances, I’d be prepared for a full audit to ensure all taxes due had been accounted for and paid.
 
Kevj said:
That sounds terrible. Is there any way to appeal? Under those circumstances, I’d be prepared for a full audit to ensure all taxes due had been accounted for and paid.
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but that’s the point, many wouldn’t be able to prove that tax has been properly paid.
 
Surely all the places that have had to close due to lock down will just take the extra profit? Supermarkets may cut prices in an attempt to steal custom from other places.
 
Fact Hunt said:
but that’s the point, many wouldn’t be able to prove that tax has been properly paid.
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There is a valid argument for example Taxi drivers etc. who calculate their tax self assessments to be exactly below the threshold of where any meaningful cash values are due. In these circumstances, I’d agree that they get paid what they claim they’ve historically earned.

There must be more instances of self employed people who are legitimate in their claim and fall foul of an arbitrary 36 month ruling?

Edit: I’ve used taxi drivers as an example only of what is a general perception and @johnna fuck off.
 
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Kevj said:
That sounds terrible. Is there any way to appeal? Under those circumstances, I’d be prepared for a full audit to ensure all taxes due had been accounted for and paid.
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It is terrible. I mainly have his word to take for it but he’s a stand up bloke.

He’s become an unofficial spokesman for those unable to get support.
 
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