Get ready for a special "summer budget"

[contractorinatractor]

The trick is to maximise taxes that foreign visitors and tourists pay, as there will be hordes more of these if the pound drops against the dollar and/or Euro.

Just for clarification: non-EU tourists don't pay VAT in the end, as they reclaim it back at the airport or online.

[milanbenes]

Reducing Vat from 20% to 19% is a 5% cut in Vat.

eh ?

can you explain that in English

thanks,

Milan.

[milanbenes]

Oh tulip

You are right...



This is much worse than!

£6 bln per annum is £30 bln over 5 years, just 1% reduction (20% to 19%), for comparison massive divi hike was projected to deliver a LOT less!

eh 120billion - 99% is 1,2billion

where did you get the 6 from and the 20 ?

I can remember 17% vat

Milan.

[diseasex]

eh 120billion - 99% is 1,2billion

where did you get the 6 from and the 20 ?

I can remember 17% vat

Milan.

no it's
20% vat = 120billion
1% vat = 120billion / 20 = 6billion

[VectraMan]

eh ?

can you explain that in English

thanks,

Milan.

No. Only in maths.

[diseasex]

no it's
20% vat = 120billion
1% vat = 120billion / 20 = 6billion

That doesn't include any benefits of reduced vat like slightly higher consumption.

[milanbenes]

it's 6 billion - just did it on the calculator ;-)

Milan.

[diseasex]

it's 6 billion - just did it on the calculator ;-)

Milan.

congratz!
</sarcasm>
:P

[vetran]

eh ?

can you explain that in English

thanks,

Milan.

Vat is a percentage. If you take 1% off the percentage then you are cutting the actual amount of vat collected by 5%.

if you have a bill of £500, at 20% vat HMRC would get £100,

if it was 19% then you would get £95 a 5% fall in vat collected.

[SeanT]

They'll probably leave the limited cost flat rate at 16.5 too