Reply to: Ooops they did it again: Shoppers could face VAT on food

[thunderlizard]

To be cynical, the mention of VAT on food could simply be scare tactics so that raising the standard rate to 20% is more readily accepted.

Much more likely. Putting VAT on food would simplify the tax regime (quashing the fascinating Jaffa Cake debate for a start) and that will never happen.

Unless they did it using a complex banding system based on how lardy the food is. They'll probably do that. Darn, I've changed my mind now.

[AtW]

your Plan B as unregistered up to the point where it hits the VAT turnover threshold.

get hit by a squad of anti-narcotics police

[Sysman]

Seriously I don't think this will happen. I think VAT to 20% will happen instead.

To be cynical, the mention of VAT on food could simply be scare tactics so that raising the standard rate to 20% is more readily accepted.

If you will recall, when VAT on domestic fuel was first proposed, it was put back a year, and to make up the shortfall the standard rate rose from 15% to 17.5%.

(and if you had been paying attention to the serious press, the UK had been under pressure from the EU to raise VAT to be more in line with the rest of the EU for at least a year before, so it was going to happen anyway)

[Sysman]

Nice try, but if you're VAT registered you have to assign a cash value to each transaction and pay/reclaim that.

Only if you are doing it as part of your main VAT registered business. As far as I am aware you can be VAT registered for your main business but run your Plan B as unregistered up to the point where it hits the VAT turnover threshold.

[threaded]

That's the trick though.

You never sell your surplus. You swap it or give it away.

Nice try, but if you're VAT registered you have to assign a cash value to each transaction and pay/reclaim that.

[AtW]

You swap it or give it away.

That's benefit in kind dear Sue - even giving it away creates good will and possibility to benefit from it in the future.

Please turn yourself into the nearest tax office for further questioning.

Yours,

HMRC

[SueEllen]

Actually... if you're selling it, the tax man will want their cut.

HTH

That's the trick though.

You never sell your surplus. You swap it or give it away.

[minestrone]

Tesco will be fine.

You can't grow oranges, pineapples and bananas outside in the British climate. And loads of allotments ban livestock and chickens.

Salads are a killer, 1 quid for a small bag. you could get a bag of 200 seeds for a quid.

The illegals are keeping chickens down the road from me, outbreaks of chicken mites in the area.

[threaded]

They can't tax what grows in my plant pots............

Actually... if you're selling it, the tax man will want their cut.

HTH

[SueEllen]

I am trying to get an allotment just now, 15 year waiting list round these parts. What is the point really in wating. Shed loads of council land that could be turned over for this purpose near me but could you see tesco happy with everyone growing their own food.

Tesco will be fine.

You can't grow oranges, pineapples and bananas outside in the British climate. And loads of allotments ban livestock and chickens.

[Fred Bloggs]

I'm sure they'll introduce a gardening tax to prevent "tax avoidance" on VAT on foods.


Seriously I don't think this will happen. I think VAT to 20% will happen instead.

Correct.

[HairyArsedBloke]

They can't tax what grows in my plant pots............

Nothing so exciting unfortunately.

There was a little garden that went with the condo ex-mrs HAB and I had. When we moved in, one of the first things she did was to go through all the plants in the garden to see what they were. “O.K. that’s nice. She can look after all that”, thinks HAB.

Then she comes in and drags me out to look at some of them asking what they are. Fracked if I know one plant from another. Then she goes on about someone from work that said that her neighbours got into trouble with the police because there was marijuana growing in the garden that they knew nothing about. This is a classic joke played by the locals on the expats and the stupid tart had fallen for it hook, line and sinker.

I was told about the gag as soon as I said we were looking for a new place. I was talking to one guy from one of the gardening companies. He says that he gets calls all the time to look around peoples gardens to check them out. I asked if it was one of his marketing ploys, but he said he’d been in the business ten years and the joke pre-dated him by a long way.

[minestrone]

You might want to look into landshare

I have been keeping my eye on that, (one of the reasons why I think C4 have a claim to the licence fee as well but that is another story) not really much in my area sadly.

[AtW]

They won't do it, because if they do that will push official inflation up like 10%+.

[norrahe]

I am trying to get an allotment just now, 15 year waiting list round these parts. What is the point really in wating. Shed loads of council land that could be turned over for this purpose near me but could you see tesco happy with everyone growing their own food.

You might want to look into landshare