VAT increase

[Bat21]

How many retailers have added 2.5% to their prices instead of the correct 2.2%... and I bet no one will notice

 

[Chas]

I thought the new VAT rate was 20%, the previous rate was 17.5% wasn't it? so should the new rate be 19.7%?

 

[Bat21]

The new rate is 20% but that doesn't mean adding 2.5% onto the already added 17.5%, let me explain:-

An item £100 + 17.5%VAT costs £117.50
An item £100 + 20%VAT costs £120

But an item £100+17.5% and then another 2.5% added to that = £120.43

That's a 43p over charge.

I'll get my anorak

 

[Ecky Thump]

 

[Chris]

I can only say as one of the UK's largest retailers that A) we have NOT added the additional VAT yet (well we stand the difference for now) and B) we will not be adding 2.5% to the item price including the original vat ie £117.50 + 2.5%.

So we will be only charging £100 + £20. You will be able to keep the 43p I can assure you. You have no idea what this exercise costs us either. It is a mammoth task. We have over a third of a million individual items of assortment, x the number in stock x the number of branches, all ticketed ready for sale. It's not as easy as simply telling the till to make the change. And we've had to do this before of course not long ago when the rates were changed by the previous idiots. it's not just the consumer who gets clobbered.


Chris

 

[Chas]

Thanks for that answer Paul, but not all retailers are the same, an archery shop I get my equipment from has not added the increase yet

 

[Steve Wright]

The new rate is 20% but that doesn't mean adding 2.5% onto the already added 17.5%, let me explain:-

An item £100 + 17.5%VAT costs £117.50
An item £100 + 20%VAT costs £120

But an item £100+17.5% and then another 2.5% added to that = £120.43

That's a 43p over charge.

I'll get my anorak

Paul

I think you have the wrong idea of the VAT !

its not 17.5% + 2.5% as you put it, its simply 20% and just happens to be 2.5% more than it was before 4th Jan.

so it can only be : £100 + Vat is always going to be £120.00

 

[TonyP]

I recon some retailers will take the oppertunity to increase the prices as this is a good excuse to hide it

 

[Bat21]

The new rate is 20% but that doesn't mean adding 2.5% onto the already added 17.5%, let me explain:-

An item £100 + 17.5%VAT costs £117.50
An item £100 + 20%VAT costs £120

But an item £100+17.5% and then another 2.5% added to that = £120.43

That's a 43p over charge.

I'll get my anorak

Paul

I think you have the wrong idea of the VAT !

its not 17.5% + 2.5% as you put it, its simply 20% and just happens to be 2.5% more than it was before 4th Jan.

so it can only be : £100 + Vat is always going to be £120.00

I think you need to re-read my post Steve

Yes £100+VAT is £120 but I know of one large retailer who were going to add 2.5% onto existing prices

 

[Jimbo4x4]

Fuel round here got hit today, and boy am I glad I filled up yesterday. Diesel @ 126.9 yesterday now up to 130.9

 

[Gav Peter]

I filled up at the wrong place then - where do you fill up Jim?

 

[Jimbo4x4]

Shell, either Gayton roundabout or A540 Hinderton crossroads in Neston - they're always the same price. Shells on A41 at Eastham and on Borough Road B'head are usually a penny or two cheaper too, if not the same.

 

[Jon Wildsmith]

lpg prices had already crept up a few pence in recent months so I bet they will have gone up another few pence as well then.

 

[Steve Wright]

The new rate is 20% but that doesn't mean adding 2.5% onto the already added 17.5%, let me explain:-

An item £100 + 17.5%VAT costs £117.50
An item £100 + 20%VAT costs £120

But an item £100+17.5% and then another 2.5% added to that = £120.43

That's a 43p over charge.

I'll get my anorak

Paul

I think you have the wrong idea of the VAT !

its not 17.5% + 2.5% as you put it, its simply 20% and just happens to be 2.5% more than it was before 4th Jan.

so it can only be : £100 + Vat is always going to be £120.00

I think you need to re-read my post Steve

Yes £100+VAT is £120 but I know of one large retailer who were going to add 2.5% onto existing prices

Paul

I don't need to re-read your post, but if you know someone is doing that then contact HMRC, and I bet they will soon do something about it.

 

[Bat21]

Paul

I don't need to re-read your post, but if you know someone is doing that then contact HMRC, and I bet they will soon do something about it.

I said WERE going to add 2.5%

And no I haven't got the wrong idea of the VAT, if you'd have read my post correctly you would realise that

Here you go Steve

 

[Richard Jackaman]

To be pedantic VAT has increased by 14.2% or 2.5 percentage points.

The overall cost to the consumer, us, is 2.5%

 

[Gav Peter]

Here y'are, this'll help...

VAT Calculator

 

[Bat21]

To be pedantic VAT has increased by 14.2%

I make it 14.3%

 

[Richard Jackaman]