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UK Vat sales tax reduction .....


philspectrum
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The Gov announced a reduction in uk sales tax - VAT from 17.5% down to 15% as of next monday 1 dec.

What are YOU going to do about it?

My price lists are already printed/published, and it is no easy matter to re-program my till.

I do have the option of ringing in at old price, - then offering a 'discount' on the total, - but then my tax collected figure does not go down, - instead my till reciept just shows 'discounts' of £x

If course the real temptation is to leave prices as they are, - and for the business to pocket the 2.5% - we could argue that we havn't changed prices in years dispite costs increases.

How are you going to deal with this issue?

Phil

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Intresting thread on the BBC site going at the moment ->

http://newsforums.bbc.co.uk/nol/thread.jspa?forumID=5702&edition=1&ttl=20081125105406

One item that caught my eye ->

Added: Tuesday, 25 November, 2008, 24:38 GMT 00:38 UK

So I'm now expected to go round my 3 optical practices and re-price and barcode every single frame? (About 1500). This would mean cancelling days of appointments. Or perhaps I'm meant to employ extra staff to do this?

I'm going to press the button on my computer which will put less VAT on the stock and keep the extra profit. 40% will go back to the government as tax anyway.

It'll save me re-pricing everything as all of our suppliers are increasing their cost prie by 3% on the 28th of November.

T B, Penrith, United Kingdom

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Definately NO reductions here, as a trader for many years we have absorbed many of the increases ourselves and Profit margins are much lower than they were say 5 years ago.

Companies are still using their increased or indeed very new raised delivery charges because of fuel prices some months ago.......well thats gone down but you don't see them reducing delivery charges.

About time we had something of a break!!!!!!!!!!! Vat is always a killer for me.

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Someone pointed out to me in another forum that if you are reducing the VAT element in a price which already INCLUDES vat then the correct %age reduction is actually 2.13 % of the gross amount. Just remember that if customers insist you reduce their bill.......

Makes a mockery of this government doesn't it.

Are we all ready for the hordes of people queuing to spend money on Monday ??  ;D

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Such a small percentage, but not going to make a change to prices.  We have not changed them this year, last update end of 2007.  Anyone ask why?  Then I will mention 10-15% rise on paper and board, Epson inks up 10% twice, minimum wage up about 5%, rate, electric up etc. to name a few price rises all much larger that the 2.13% fall.

Only difference will be when we calculate the VAT content on invoices.  So our business customers will be getting a 2% rise, the only one this year.

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