VAT reduction of 2.5 percentage points

[blondini]

Imagine the reaction if VAT were increased by 2.5%.

 

[2scoops0406]

How did this idea arise that the public purse is just a magic pot of money to be shared out in tax cuts?

If you're so disapproving of this nation and the way that it's run, then just f*** off and live somewhere else.

It's a very tempting thought to those who can.

 

[LionsDen]

If you're so disapproving of this nation and the way that it's run, then just f*** off and live somewhere else.

If we hadn't been ripped off so much by Labour, maybe those of us that are sick of this shower of ****e of a Government could afford to f*** off.

 

[blondini]

Imagine the reaction if VAT were increased by 2.5%.

And Softus replied but some Norris has deleted.

 

[Softus]

Imagine the reaction if VAT were increased by 2.5%.

At last - the voice of reason.

If you're one of the blinkered fools who prefers that my posts are deleted so that you can't read them, then do yourself a favour and at least listen to blondini.

 

[dave.m]

Am I the only sceptic with a calculator? I was sat sitting this morning, as you do when you get up, AND before you say owt, No I don’t have my calculator with me in the bathroom.

Take this situation. Haulage firm who can claim VAT back.
HGV lorry with two 45 gallon diesel tanks = 410 litres when filled.
Diesel at 113.9p/ltr

Pre budget:
Full tank inc VAT £467.00p
Full tank ex VAT £397.44p

Post budget
Full tank inc VAT £467.00p ( because duty will have been increased to replace loss from VAT)
Full tank ex VAT £406.09p

An increase of £8.65p per full tank of fuel.

Haulage costs will increase so prices at the shops will increase.

NOW, if an item that cost
£100.00p + VAT @17.5% = £117.50p
is increased in price because of haulage charges to
£102.17p + VAT @ 15% = £117.49p Huh?

 

[joe-90]

If you're one of the blinkered fools who prefers that my posts are deleted so that you can't read them, then do yourself a favour and at least listen to blondini.

When one man argues that he is right and the rest of the world are fools - who's most likely to be the fool?

 

[Bumbly]

When one man argues that he is right and the rest of the world are fools - who's most likely to be the fool?

Confucius say "man with one leg can't play hopscotch"

 

[LionsDen]

If you're one of the blinkered fools who prefers that my posts are deleted so that you can't read them, then do yourself a favour and at least listen to blondini.

When one man argues that he is right and the rest of the world are fools - who's most likely to be the fool?

Holy ****, I'm actually agreeing with something joe said. You see, Labour really are uniting the country. God bless you, Gordon.

 

[Trazor]

If you're one of the blinkered fools who prefers that my posts are deleted so that you can't read them, then do yourself a favour and at least listen to blondini.

When one man argues that he is right and the rest of the world are fools - who's most likely to be the fool?

Errm.....Thats not what Softus said, or meant.

 

[JohnD]

JohnD's example is very simplistic, and wrong, in that pensions are accrued over 40 years, therefore, the removal of tax relief on dividends is much much more significant.

Yes, it was deliberatly simple to illustrate the point.

But wrong?

Your £100,000 (example) pension fund, over 40 years, at an average growth of 8%, will have some very big numbers in it. The dividends are a very small part of final fund value, and the dividend tax credit is a very small proportion of that.

They are a neglible part of the numbers in any one year, and they are still a negligible part of the numbers over 40 years. They are lost in the bigger growth and charges numbers. The difference by choosing a life office with slightly higher, or lower, TER vastly exceeds the difference made by the tax credit.

Calculating a 40-year projection, with monthly contributions and growth, and annual charges, all varying with current find value, is a very tiresome job and I can't be arsed to go through that all over again.

 

[blondini]

Imagine the reaction if VAT were increased by 2.5%.

Imagine no more.

David Cameron speaking about the outrageous but non existent increase of a whole 1%.

... a VAT bombshell to hit every family in the country.

So a decrease of 2.5% won't make any difference but an increase of 1% would 'hit' every family in the country.

Just for fun. Who put the rate of vat up from 8% to !5% in the eighties then put it up again to 17.5% in the nineties?

 

[joe-90]

Woolworths and MFI have both announced they are going into administration. Who are you going to spend this tax windfall with? Everybody's going broke.

 

[Softus]

If you're one of the blinkered fools who prefers that my posts are deleted so that you can't read them, then do yourself a favour and at least listen to blondini.

When one man argues that he is right and the rest of the world are fools - who's most likely to be the fool?

The one who either can't read, or didn't see the posts that were deleted.

 

[2scoops0406]

JohnD's example is very simplistic, and wrong, in that pensions are accrued over 40 years, therefore, the removal of tax relief on dividends is much much more significant.

Yes, it was deliberatly simple to illustrate the point.

But wrong?

Your £100,000 (example) pension fund, over 40 years, at an average growth of 8%, will have some very big numbers in it. The dividends are a very small part of final fund value, and the dividend tax credit is a very small proportion of that.

They are a neglible part of the numbers in any one year, and they are still a negligible part of the numbers over 40 years. They are lost in the bigger growth and charges numbers. The difference by choosing a life office with slightly higher, or lower, TER vastly exceeds the difference made by the tax credit.

Calculating a 40-year projection, with monthly contributions and growth, and annual charges, all varying with current find value, is a very tiresome job and I can't be a***d to go through that all over again.

Could you calculate how much would be lost from your pot with a 10% div (generous) taxed at 40% and not taxed? over 40 years, no I can't be arsed either, but I bet it won't be insignificant.


its about 4 times roughly.