VAT Increase

[lfc958]

With the recent increase in VAT, TV reports a bit of apathy amongst people that they have spoken to, whilst the papers late last year went their usual doom mongering.

What are the views on Brisky about the VAT rise ?

What are you going to cut back on or even stop buying ?

Me - Nothing really as I got any large items needed last year.

I did consider changing my mobile contract, but I consider my current contact value for money.

Am considering reviewing my cable contract in a month or 2.

Dont Smoke, Only go to the pub for the Brisky meets, so the fuel increase, & the rise in food costs will be the only real hit ( despite no VAT rise, these WILL go up due to transport cost increases )

['daiking']

Nothing really. When it was first announced, I did try to see if I could make any worthwhile savings by buying before the change but nothing seemed worth the effort. So I'm pretty much carrying on as before.

The only thing I might consider is changing back to frumpy wheels after succumbing to wheel vanity last year. Big wheels on low powered car seems to have hit my economy somewhat.

[Wardy]

Cut back on - diesel, by the looks of the current prices being charged!

Just glad I'm no longer running something requiring Super Unleaded, that's all I can say.

Other stuff - just wait and see I suppose, see how supermarket prices are affected.

I think it'll be the effect from the small increase on LOTS of the items you buy frequently, rather than the increase on larger items that'll make the difference. It'll all add up. A one-off charge of say, a TV at £400 (for example) will be an additional £9. Not the end of the world as you're only buying it once.... - I therefore find the 'impulse' buying of some on white goods a bit odd, in the run-up to the VAT increase.

On an everyday basis I'll just see how things play out I suppose; see how much less money I have left at the end of the month and adjust accordingly :wonder:

Cheers,

Steve

[octaviaconvert]

I'm not going to cut back on stuff but I think i"m more likely to shop around. lets face it, the VAT increase is 25p for every £10 you spend. Shopping around and using places like topcashback and nectar e-stores will be the way to go to try and recoup some of the costs of the increase.

The only thing that will really hit me is the rise in fuel costs, although I think thats persuaded me to go for a remap, on the grounds of increased fuel economy of course

[Wardy]

Big wheels on low powered car seems to have hit my economy somewhat.

Likely to be the extra weight in them, more than the increase in size. My 17-to-18 swap doesn't seem to have had any effect on comsumption and that's the first time that's happened with a wheel increase! This time the 18s are lighter than the 17s they replaced though...

['daiking']

see how much more month I have left at the end of the money and adjust accordingly :wonder:

How long till we're in this position?

Likely to be the extra weight in them, more than the increase in size. My 17-to-18 swap doesn't seem to have had any effect on comsumption and that's the first time that's happened with a wheel increase! This time the 18s are lighter than the 17s they replaced though...

Yes, they (18s) felt significantly heavier than the 15s that came off but 15 to 18 is quite a change, doh.

Edited 5 January, 2011 by 'daiking'

[Wardy]

Classic phrase! For some, I'm betting we're already there

[*tim*]

the VAT increase is 25p for every £10 you spend.

Its less than that, price goes up 21p per £10 spent. There you go, you just saved yourself 4p

[octaviaconvert]

Its less than that, price goes up 21p per £10 spent. There you go, you just saved yourself 4p

even better, see times aren't that bad after all

[*tim*]

In answering the question, its makes little difference to me, much the same as when VAT was reduced to 15%, and much the same as when it went back to 17.5%.

Fuel is the big one, especially with an extra 7p per liter in duty in April and the possible increase in oil prices. Maybe we'll be seeing diesel at £1.50 a liter this summer.

[SnailUK]

Cant say the VAT increase is going to make any real difference to how i shop.

Only thing i will say, is im going to enjoy driving fast petrol cars for the time being, as when my cars come for replacement, economy will be one of the primary considerations, as like all drivers, im getting fed up of the constant rimming i get from the government and petrol companies.

[chrisw880]

I won't be cutting back

[devonutopia]

Rather than cutting back per se, I am planning harder to spend the summer doing detailing on the side - so get more income rather than spend less. Obviously being an accountant I need to pay my tax too on this, but every little helps.

[Jim H]

If you are wondering about some shops, then this may be good news.

Poudland stores

However, a few years ago, they did not reduce the price when VAT was 15%.

Also when shopping, there are quite a few things that are VAT free. Books, magazines and lots of food are not charged. Bisects should change, but Jaffacakes should not.

[PhilP1903]

Nothing, it will not make a blind bit of difference to me , apart from fuel prices but we are now so used to it rising we regard it as almost inevitable.

[richardsfavorit]

Fuel prices are mainly what Im concerned about. I have noticed a big difference going from 17" alloys to 15" steels in terms of economy. The trip computer is saying Im getting quite a bit more to the gallon! So will be driving a bit more gently now fuel is going through the roof and will have to decide if its worth refitting the alloys!

[Wardy]

Obviously being an accountant I need to pay my tax too on this, but every little helps.

Surely that should mean you'd instead be better at paying less Jason?

[tax-avoidance-is-legal]

Try and avoid paying it, that is how the wealth got and stay wealthy. VAT (and the excise duty rise) is going to about half of people's extra cost in 2011.

Most wealthy people and those on higher wages put the expense though the company or have a fuel card so avoid the worse of these rises.

Only about half of all monies changing hands is taxed, the rest is either avoided (legal) or evaded (illegal). Paying these taxes is for mugs. People should wake up for their own good and recognise the society we now live in. VAT particularly is a tax the wealthy can largely avoid if they make the effort.

Edited 6 January, 2011 by tax-avoidance-is-legal

[ap0gee1978]

We've just had to buy a new HDD/DVD since the DVD burner failed, and it cost exactly the same when I ordered it yesterday as it did before Christmas apparently. Likewise, although we'll be looking for a new car for SWMBO this year, I fully expect the retailers' attempts at inciting panic-buying of high-cost items in the run-up to the VAT hike (wow, what a lot of hypenation! ) will mean they struggle to find buyers in 2011 so we should be able to drive just as good a bargain in 2011 as we could have got in 2010.

I was annoyed to begin with at the thought of paying for an extra week's groceries just in tax each year, but as the New Year has brought in a junk food embargo chez Ap0gee in the interest of my waistline, I now see that most of our shopping will be exempt from VAT anyway...

http://www.hmrc.gov.uk/vat/forms-rates/rates/goods-services.htm

[lfc958]

I was annoyed to begin with at the thought of paying for an extra week's groceries just in tax each year, but as the New Year has brought in a junk food embargo chez Ap0gee in the interest of my waistline, I now see that most of our shopping will be exempt from VAT anyway...

I can see that a lot of people are relieved that food is VAT exempt, however what is forgotten that transport costs are going to go up & we all know that supermarkets are not going to swallow that cost.

I think there should be a reality check in respect to food prices, we should at least expect a price rise by 2.5% & given the supermarket greed it will be more, I wont even guess what rise they will hide in the statement of transport cost rise.

Cynicism reigns here specially given the history of price rises - Supermarkets squeezing farmers & not actually passing on any real savings, - Fuel prices going up & then immediately being passed to the consumer, but when they drop, the excuse of " it takes 6 weeks to filter through" then in reality we dont see the real drop back.

On the plus side, there could be some real bargains to be had given that in general people will cut back in some areas.

[ap0gee1978]

Well, yeah. Inflation's inflation, and supermarkets will always squeeze their supplier. But that's outside the scope of the thread, insofar as it's not linked to the VAT rise...

FWIW, just been on the Skoda and SEAT websites and both are offering no VAT until 31st March - surprise, surprise!

[lfc958]

Is that a 17.5% or 20% reduction

[ap0gee1978]

20% :p

['daiking']

20% :p

Shirley, taking VAT off a price is a 16.67% saving.

The VAT rise is a mere trifle, my rough calcs says it costs me £20. Wait till i lose 40 quid tax credits in April as well as lose out on the income tax changes. Not to mention the planned loss of child benefit in a couple of years. That's all like losing 3 grand off my income.

[BossFox]

It won't make any difference to me, just means 2.5% more government money to play with before you have to pay it back.