VAT to be cut for a year



David M said:
It was 15% in the aftermath of the 2008 downturn then when government changed in 2010 the tories put it up to 20% in their first budget.
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After making an election promise not to raise taxes. Specifically there were “no plans to raise VAT”

www.newstatesman.com

The pre-election pledges that the Tories are trying to wipe from the internet

"No frontline cuts", "no top-down NHS reorganisations", "no VAT rise" - why the Conservatives are trying to erase all pre-May 2010 speeches and press releases from the internet.
www.newstatesman.com www.newstatesman.com
 
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I know, like the £350 million we send the EU, worded in such a way that the "thickies" thought It meant some thing else to what it actually does to get them to vote for it.
 
Goat Eyes said:
They’ve been fairly shafted throughout this mind.

EDIT: those SE people you speak about.
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A self employed mate of mine was complaining he's only getting £200 a week in government help. I reminded him he's still quids in over the years with not declaring everything he earns.
 
Qwerty said:
A self employed mate of mine was complaining he's only getting £200 a week in government help. I reminded him he's still quids in over the years with not declaring everything he earns.
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Aye, I think my brother was only entitled to £600 a month if anything really. He never complained, he got on with it and got himself some work for the few weeks his site was closed.
 
MackemX said:
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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That will probably happen, yes, but in some circumstances it could also encourage competition between businesses in the same town, or online. If Business A keeps the price the same and Business B drops the price then Business B is going to sell more products and possibly keep those customers in the future. Business A may then have to drop their price to remain competitive.
 
joemcdokes said:
Just earn around £12000 a year and pay none.
There’s a solution for you, I’m sure it will make you happy.
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I've always said paying a lot of tax is a nice problem to have. I'd have no problem at all paying lots of tax as it would mean I was earning lots. I'd rather pay loasd of tax than be paying none. The problem I have is the companies that wangle their way out of paying their share. The country would be far better off if it could collect all of the revenue it was due.
 
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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People are realising how impossible it is for people to live on UC now.
 
42 said:
The clue was in the way they phrased it.
They never said they weren't going to increase it. Anyone with any sense saw through what was typical politician doublespeak
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Which is still no defence as there were clearly plans to raise it. They just used weasel words to give the forelock-tugging spineless shit-for-brain mob who actually think the Tories give a steamy shit about them or their families interests.

That and the LibDems selling their souls to the devil for a sniff of the barmaid’s apron. God we are so easily bought off.
 
Goat Eyes said:
A cut in VAT will stimulate both consumers and businesses to spend though.
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What a load of rubbish .

an item priced at £10 now including VAT @20 % would then retail at £9.60 if the VAT is reduced to 15%.

Before you know it the product will be repriced at £10 and the retailer will take the reduced VAT element as extra profit.

A reduction in basic rate tax will be better for the economy by putting more money in wage packets.
 
bomber said:
Treasure Islands nearly £2 trillion in debt,any cut in VAT will have to be recovered elsewhere.
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I suggested this earlier. A cut now could be a precursor to an increase above the 20% threshold later. It’s why a cut to income tax would be better for individuals but may not be for the economy longer term.
 
Kevj said:
I suggested this earlier. A cut now could be a precursor to an increase above the 20% threshold later. It’s why a cut to income tax would be better for individuals but may not be for the economy longer term.
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correct,daft to cut it to raise it back above what it was.
 
buster said:
What a load of rubbish .

an item priced at £10 now including VAT @20 % would then retail at £9.60 if the VAT is reduced to 15%.

Before you know it the product will be repriced at £10 and the retailer will take the reduced VAT element as extra profit.

A reduction in basic rate tax will be better for the economy by putting more money in wage packets.
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How will that stimulate businesses to spend?
 

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