Tuesday, Nov 25, 2008
Brilliant: BBC gets simple % saving wrong
BBC: Cut in VAT leaves shoppers cold
I think this illustrates the general misunderstanding of % in this country. I'm presuming it's a "soft" degree journo reporting financial news,
like the rest of these muppets. Ross was right.
BBC, FYI it's 1.15(£10,000/1.175) = £9,787.23, giving a saving of £212.77.
Posted by doomwatch @ 04:53 PM (832 views) Add Comment
14 Comments
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1. Mr Gerbil said...
True. I've seen loads of media people make this mistake over the past two days. It is, by the way, a classic error of first year accountancy students!
2. whostolemyendowment said...
But the retail supply chain will have been running with 17.5% VAT, and now can only charge 15% to the end buyer (you and me)....who will pick up the difference when business's VAT returns are submitted, and the input and output tax does not match up? Who will carry the financial can, or divvy up the difference? Don't expect HMRC to move fast on this one....please can anyone answer my questions.....I'm confused dot com!
3. doomwatch said...
FYI the idiots had originally priced the saving at £250, but have since changed it.
4. icarus said...
Good point, doomwatch.
whostole...you're confusing the government. Please desist.
Extra staff to re-price stock? Maybe new software to get the tills to knock off 2.1277%? Yvette Cooper says it will help Christmas shopping but one store manager tells us that prices won't reflect the change until the new year. Oh dear.
5. paul said...
I like the way the BBC have changed it without.
But Hey Revisionista got it, about an hour after you posted the article here, doomwatch!
http://www.newssniffer.co.uk/articles/177081/diff/0/1
Typical of the "we work in meeja" clutzes at the BBC. Can't do basic maths.
6. alan said...
As Richard Littlejohn said in The Mail, "this (package) is all about saving Gordon - not Britain"!
As companies waste money in changing their computer programs, it's all about looking as if Gordo is in control.
7. Maihem said...
The recent times article about this made the same mistake - that was a university professor.
8. another alan said...
That great source Richard Littlejohn!
9. paul said...
"That great source Richard Littlejohn!"
Indeed. Even a stopped clock tells the right time, twice a day.
10. doomwatch said...
Thanks Paul, that's a great little tool. I was beginning to think I'd be lambasted by the prison planet CIA double agent illuminati.
11. Jj said...
Is anyone aware how much it will cost businesses to change all of their electronic systems to cope with the 15% VAT change. In a lot of cases it will be a manual process, changing tills, computer systems and in some cases updating accounting systems that have been fixed and not updated over the last few years. Then they'll have to do it all again in Jan 2010 to revert it back and then all over again when VAT rises to 18.5% later that year. I believe it will put an end to a lot of small businesses and cost the corporate stores a lot of un-necessary money.
12. Luckyjim said...
"I like the way the BBC have changed it without."
Was that supposed to be a sentence ?
13. iguana said...
Whostolemy......
There is no shortfall, stock is held VAT free, the input tax having been reclaimed (at the rate charged by the supplier) the retailer simply charges the new rate to the customer OR in reality charges the same sale price as before and only accounts for output tax at 15%.
14. Urban Bear said...
That Darling is a complete bar-steward, he is disrupting my work and stealing yet more of my hard earned money via NI, the VAT cut will have little effect on me and pisses me off, because I have to delay my shopping to Monday, and next weekend, for very little benefit. I real glad I'm heavy with my savings in Gold Bullion, at least there I don't get punished for saving, by the pathetic BOE interest rate tactics and the effectively bankrupt banks.