# Pre Budget report



## Mat430uk (Sep 17, 2007)

Pre budget report is out today may affect us all in one way or another regarding the change in Vat. from 17.5 to possibly 15% 

Will people pass on the savings ? 
Or use it as an excuse to claw some money back ?

VAT: Temporary 2.5 percentage point cut
Income tax: 5p increase for top earners after next election
Vehicle excise duty: Postpone planned increase
10p tax rebate: Extend for another year
Corporation tax: Next rise postponed


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## Jazzy Jase (Jul 10, 2008)

It's gonna cost us a bit to change all our IT systems from 17.5% to 15%. Who's gonna pay for that?!?


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## colarado red (Jun 5, 2008)

what ever happens we will be paying for it for years to come £400 car tax more like £500+ it's always the motorist who pays for it hopefully i can gey out of this country before it happens


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## Trig (Jun 9, 2008)

I cant see the VAT cut being anymore than a headline grabber for Labour. For bigger companies, it will be difficult to get this passed on to the customer, probably costing more than the tax cut. For smaller companies though, it might be their signal to cut a few prices to take business away fromt he big boys. only time will tell I guess


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## Mat430uk (Sep 17, 2007)

i think your right Trig, and as for a newsline grabber for labour i agree


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## Bigpikle (May 21, 2007)

its the middle earners that will end up paying for it all AGAIN in years to come 

45% for the £150k+ bracket only brings in an extra £1.2bn, but the govts spending £15-20bn, so guess who ends up paying for all that in the next few years. My tax has already gone up well over £500 per month under a labour government, and no doubt will go up massively more with these plans :wall:

bend over and brace yourself - you're gonna need it


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## s2kpaul (Jul 27, 2006)

con dropping vat to 15% which would effect fuel yet his adding that 2.5% back on to fuel .


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## -Kev- (Oct 30, 2007)

all a total load of c**p imo.
all the government does is take take take.
if they cut something, they add it to something else.
they don't give a t*ss about the public as long as they have there cushy pensions and we pay their expenses etc.


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## dreaddan (Mar 9, 2007)

Jazzy Jase said:


> It's gonna cost us a bit to change all our IT systems from 17.5% to 15%. Who's gonna pay for that?!?


Now has someone been silly and hard coded the vat?


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## Jazzy Jase (Jul 10, 2008)

dreaddan said:


> Now has someone been silly and hard coded the vat?


Not in most of our systems, but we still have a few things running on AS400's where VAT is hard-coded! :wall:


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## Tricky Red (Mar 3, 2007)

I can see that there will be plenty of business issues. We were talking this morning. 

Suppose someone bought an item with 17.5% VAT and returned it after the VAT is altered to 15%. All the systems will be altered to 15% so you will have a dual VAT type scenario for a few months. 

Pain in the backside - as usual the Government decides then we all have to think how to introduce the damn thing.


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## Bigpikle (May 21, 2007)

total smoke and mirrors  No VAT on food and childrens clothes etc so doesnt help with essentials. Puts up duties on many things so there's a hidden tax increase at the same time - unbelievable...

and we'll be worse off with NI contributions going up AGAIN :wall:

he is a sly old fox though, increasing duty already and that obviously wont go down again when VAT comes back in 13 months time.

feel like I've been well and truly shafted again!


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## reign (Oct 6, 2008)

funny how this will work.... govt cuts 2.5% off vat, and everyone else raises their prices the difference...... go figure!!


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## -Kev- (Oct 30, 2007)

:lol:


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## Nickos (Apr 27, 2006)

wow, the £100 jumper i wanted is now 97.50, i must be able to afford it now!


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## carensuk (Aug 31, 2007)

VAT down, fuel duty up, left and right hands come to mind here


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## KleenChris (Apr 4, 2008)

so will we see 2.5% off everything that has VAT included...computers, various foods, clothes, cars etc ...even detailing goods


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## dreaddan (Mar 9, 2007)

Yes we will but for that £10 item you have your eye on has now got a hugediscount bring it down to £9.75!!


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## organgrinder (Jan 20, 2008)

> Yes we will but for that £10 item you have your eye on has now got a hugediscount bring it down to £9.75!!


I doubt it somehow. The VAT rate will change but for the average high street store I don't see prices falling. It is a good excuse to help take a bit more profit from a difficult market.

Again we have changes to fiscal policy which show that those in power have absolutely no idea what to do nor how the public will respond to such changes. Incompetant and totally out of touch!


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## KleenChris (Apr 4, 2008)

dreaddan said:


> Yes we will but for that £10 item you have your eye on has now got a hugediscount bring it down to £9.75!!


HAHA yes its seems pathetic but over the long term how much could be saved when buying items everyday...

I still think there is more trouble ahead but at least the government are doing something...even if its not that great


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## colarado red (Jun 5, 2008)

2.5% off vat on a brand new car is handy but in this climate not many people are going to take the risk and thats if they can get finance of course me and my partner should be pretty safe and why buy new when you can get pre reg and save thousands any way


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## Mat430uk (Sep 17, 2007)

seems like a complete waste of time and effort we will all be paying for it in the end with higher NI


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## drive 'n' shine (Apr 22, 2006)

KleenChris said:


> I still think there is more trouble ahead but at least the government are doing something...even if its not that great


No they are giving the illusion that they are doing something, taking 2.5% off 'here' and adding it on 'there' (fuel, tobacco alcohol) isn't really doing anything


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## ianFRST (Sep 19, 2006)

as above, i dont think its going to do much tbh.

most people need fuel, so upping that everybody will be in the same place as before.


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## Neil_S (Oct 26, 2005)

I thought they were supposed to be helping? Is all that was apparent to me was a raise in national insurance, extra tax for those earning over £150,000 and a VAT reduction that will not find it's way back to consumers and increases in fuel duty.

Bunch of morons, I think I'd feel more confident with my families cat in charge of the economy.


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## Ronnie (Nov 15, 2006)

taxed to death again high ish earner and employer shafted again. I am now thinking of sacking my workers and hiring them in as self employed subcontractors to avoid paying higher bills thus having to put my prices up and risk losing out on work!


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## Buzzsaw (Nov 4, 2007)

Neil_S said:


> I thought they were supposed to be helping? Is all that was apparent to me was a raise in national insurance, extra tax for those earning over £150,000 and a VAT reduction that will not find it's way back to consumers and increases in fuel duty.
> 
> Bunch of morons, I think I'd feel more confident with my families cat in charge of the economy.


+1 for Neils cat - what a ****ing joke


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## kenmac (Feb 19, 2008)

Instead of knocking 2.5% off VAT,why no abolish VAT on Gas & Electric completely as these prices are through the roof.


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## white bellied (Sep 17, 2008)

Bigpikle said:


> bend over and brace yourself - you're gonna need it


You'll need extra support too, becasue it's gonna hurt big time!! 2.5% off VAT and all the other 'incentives' are costing each of us £34k in the national debt. No thanks, you can keep your incentives!!



Mat430uk said:


> seems like a complete waste of time and effort NI


That's exactly what I think of our current government.  10 years of Gord's prudence have got us here. May God help us!


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