Questions for lazyweb.

[redhillian]

Yo lazyweb - I has a question.

There's rumours all over the news that the Chancellor is likely to reduce VAT to help encourage spending. If he were to do so, how soon would this take effect, or when would we see it in shops, etc.?

ETA: So now we know - it's coming down to 15%, with effect Monday 1st December.

Comments

[belisarius-534.livejournal.com]

Don't know - however..

http://www.thedailymash.co.uk/politics/politics-headlines/brown-to-gamble-on-you-being-retarded-200811241415/

is an interesting take on it :)

[paradoxrealm]

It is possible that, shoud it be put into play, that it could be made effective from the start of December.
This would have an effect on pretty much everything you buy.

TBH, it's all just pseculation until the speech is actually made, and as it is a pre budget report, I'm personally doubtful we'll see anything made effective before Yule.

[masati.livejournal.com]

It rather assumes that shops reduce their prices as a result of VAT going down rather than, for example, increasing the pre-VAT price so the price of their products remains constant while increasing their profits.

Not that I'm one of those people that wonders if the shops won't just take advantage of it to line their pockets a little deeper while making no actual difference to the consumer....

[irdm.livejournal.com]

I immeditely though of the huge amount of work (changing databases and possibly software!...) this would involve.

Especially as most final prices are cleary not "cost plus VAT" but "target price less VAT plus VAT"

[ephrael.livejournal.com]

How it would impact my database and invoice processing was the first thing I thought of. Having to pay a bit less for stuff was a close second.

[kingandy]

I think the time of effect will be included in the announcement. The BBC just says "it is not known if the cut would come into effect before Christmas as some newspapers have suggested."

If you're really interested you could keep an eye on the pre-match buildup.

[auriol.livejournal.com]

Of course, a 2.5% decrease in VAT would mean a reduction of about 30p on a £20 purchase.

I know all these small amounts add up - but the cost to industry and retail in terms of reprogramming systems at short notice will be hideous. #

Given this government's insane borrowing commitments already in place, is it just me who thinks that this is the most retarded suggestion ever, even for this government?

[redhillian.livejournal.com]

Given I'm about to drop about a grand on truck driving lessons, 2.5% is plenty of money extra in my pocket!

Yeah, it's probably insane. I didn't vote for the guy, and I won't be voting for him next time either.

But it might save me a significant number of pounds.

[redhillian.livejournal.com]

Dammit. I think I have to pay on Saturday, so I won't benefit. Maybe. We shall see.

[choccoweeble]

I think you'll find that as the "services" will be delivered (ie you will have the lessons) after 1st December you are entitled to demand to be invoiced at the 15% rate. For more detailed information check out this, there's also loads of other info on the HMR&C website.

[redhillian.livejournal.com]

That's brilliantly useful and great news, thanks loads!

[cuthrose.livejournal.com]

Yay now i now have over 300 programs to re-code due to people not future proofing them!

[redhillian.livejournal.com]

That's called job security isn't it?