24% corporation tax

[Lance]

We are talking about in the situation where a contractor's limited company is paying VAT - in any scenario where a contractor is talking about the VAT they pay it's a zero sum game.



Um how does that work as that is exactly how it currently works. My VAT registered company imports £8000 of parts from Germany, combines them and sells them for £12,000 after 20% VAT. HMRC get the 20% VAT.

If my company had to pay VAT on the parts as they are imported and cannot claim it back all you've done is made my costs £1600 more expensive and reduced my profit from £2000 to £400 resulting in me having to now charge £14,400 for the goods making me un-competitive.

Trump did exactly that with all his tariffs from China - end result was that it was cheaper to import the finished goods direct from China rather than importing the steel and keeping the manufacturing in the UK.

I didn't say it was a good idea. It's just speculation.
As for the contractor scenario, that isn't really what I was getting to. The govt need more cash and increase of CT is a politically easy way to look like you're generating more money when in reality they aren't. But they've painted themselves into a corner with the manifesto.
So a stealth VAT increase on EU good might be one way they get more money.
I dunno really. I'm just an armchair economist.

[The Spartan]

VAT in a B2B sense is (mostly) zero sum. Ultimately, it's the consumer and non-VAT registered entities that pay it.

It's here where they will gain as people buy lots of tech and gadgets from the EU. No doubt in future customs fees and VAT will be added like to purchases from the US and China.

[hugebrain]

VAT in a B2B sense is (mostly) zero sum. Ultimately, it's the consumer and non-VAT registered entities that pay it.

It’s 20% of everything (except for landlords’ “earnings” since lots of MPs are landlords). And a vast source of money.

As a contractor you pay 20% directly, but the revenue take in much more than that since you add more value than you charge (otherwise the company wouldn’t hire you in the first place).

You even have to pay VAT on the tax you’ve already paid (beer becomes more valuable after you pay the duty, also petrol etc.).

Saying it’s OK because just consumers pay it is just falling for the government tricks, like permies who think employers’ NI or corporation tax doesn’t affect them because someone else is paying it.

[ladymuck]

It’s 20% of everything (except for landlords’ “earnings” since lots of MPs are landlords). And a vast source of money.

As a contractor you pay 20% directly, but the revenue take in much more than that since you add more value than you charge (otherwise the company wouldn’t hire you in the first place).

You even have to pay VAT on the tax you’ve already paid (beer becomes more valuable after you pay the duty, also petrol etc.).

Saying it’s OK because just consumers pay it is just falling for the government tricks, like permies who think employers’ NI or corporation tax doesn’t affect them because someone else is paying it.

I didn't say it was OK.

[eek]

It’s 20% of everything (except for landlords’ “earnings” since lots of MPs are landlords). And a vast source of money.

As a contractor you pay 20% directly, but the revenue take in much more than that since you add more value than you charge (otherwise the company wouldn’t hire you in the first place).

You even have to pay VAT on the tax you’ve already paid (beer becomes more valuable after you pay the duty, also petrol etc.).

Saying it’s OK because just consumers pay it is just falling for the government tricks, like permies who think employers’ NI or corporation tax doesn’t affect them because someone else is paying it.

No I say it's far because there is nothing wrong with taxing consumption.

[LondonManc]

That't the problem of capitalism: makes you having to work as much as possible because you MUST have more and more stuff.

Society should just chill.

That's personal greed/consumerism, not capitalism.

[OwlHoot]

here's a thought...... but not one they'll advertise too loudly...

When we crash out of the EU on 1st Jan, a good percentage of the annual £372b worth of imports will attract VAT at 20%. At a conservative £200b that would be £40b additional revenue.
And not a single 'tax rise' to get there.

Yep, and cancel the insanely outdated HS2 project. That will add £100 billion to the pot immediately (actually, probably double or more of that by the time the massive white elephant is complete).

I really wonder if Boris is firing on all cylinders pressing on obsessively with HS2. If he thinks it will "connect northern voters" or some such utter bollocks, he is living in a bubble so imprenetrable that no known material outside Larry Niven's science fiction novels could match its constituent properties.

[Old Greg]

Yep, and cancel the insanely outdated HS2 project. That will add £100 billion to the pot immediately (actually, probably double or more of that by the time the massive white elephant is complete).

I really wonder if Boris is firing on all cylinders pressing on obsessively with HS2. If he thinks it will "connect northern voters" or some such utter bollocks, he is living in a bubble so imprenetrable that no known material outside Larry Niven's science fiction novels could match its constituent properties.

I doubt the 100 billion is really funded so it isn't there to go into the pot.

But Johnson is both vain and incompetent, so he has an affinity with grand projects.

[DoctorStrangelove]

Yep, and cancel the insanely outdated HS2 project. That will add £100 billion to the pot immediately (actually, probably double or more of that by the time the massive white elephant is complete).

I really wonder if Boris is firing on all cylinders pressing on obsessively with HS2. If he thinks it will "connect northern voters" or some such utter bollocks, he is living in a bubble so imprenetrable that no known material outside Larry Niven's science fiction novels could match its constituent properties.

A General Products Hull!

Today Number 10, tomorrow Andromeda!

[BR14]

A General Products Hull!

Today Number 10, tomorrow Andromeda!

called 'the suspension of disbelief' ?