Reply to: Get ready for a special "summer budget"

[AtW]

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

Inflation os 2-3% - it will eat 1% reduction in VAT quickly, more importantly companies will just keep prices to increase margin - last Labour VAT change was crazy - short notice and then it came back up on 1 Jan FFS

VAT should go up to 25% over 5 years - income tax down

[SeanT]

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

[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.

[diseasex]

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

Milan.

congratz!
</sarcasm>
:P

[milanbenes]

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

Milan.

[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.

[VectraMan]

eh ?

can you explain that in English

thanks,

Milan.

No. Only in maths.

[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

[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.

[milanbenes]

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

eh ?

can you explain that in English

thanks,

Milan.

[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.

[darmstadt]

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.

Unless there are more terrorist attacks...

[OwlHoot]

leave it at 20% its absolutely fine.

Maybe cut reclaim in certain companies.

Vat is one tax most people actually pay.

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.

[vetran]

leave it at 20% its absolutely fine.

Maybe cut reclaim in certain companies.

Vat is one tax most people actually pay.

[VectraMan]

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