Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Retailers Angry At New Year's Eve Vat Return

Recommended Posts

http://business.timesonline.co.uk/tol/busi...icle6514980.ece

Britain’s biggest retailers attacked the Government last night over fears that the timing of VAT being returned to 17.5 per cent would cause huge disruption during the critical Christmas trading period, The Times has learnt.

The increase, from 15 per cent, will come into force at midnight on New Year’s Eve, and a number of important retailers have urged the Government to postpone the tax rise by a month, until the high street is quieter.

Sir Stuart Rose, the executive chairman of Marks & Spencer, said last night: “Increasing VAT on New Year’s Eve is an insane time. If the Government had any sense, they would delay it for a month. There needs to be a conversation with us about the timing of this. The tax rise is at the worst possible time — right in the middle of the sales period.

“The key question is what it’ll do for sales, because the cost to customers will rise at a really important trading time. And there’s all the admin.â€

Surely putting the rate back would make more sense either the beginning of Dec or the end of Jan?

Rather than picking New Years Eve???

Share this post


Link to post
Share on other sites

Yes, I have wondered about this since the policy was announced. First they expected businesses to adapt to the new rate within a couple of weeks, and then they choose it to revert on new year's eve. It really just shows how incompetent the government is, and how none of the people in charge have any business experience at all, let alone any common sense. Just a bit of common sense alone would tell them to do it at some other time. The sooner they are kicked out of government the better.

Edited by BalancedBear

Share this post


Link to post
Share on other sites

I think it was pretty obvious the govt is now so above the real world that they just don't have a clue. Does anyone who's visited Britain actually advise them or are they purely listening to aliens now?

Share this post


Link to post
Share on other sites
Sir Stuart Rose, the executive chairman of Marks & Spencer, said last night: “Increasing VAT on New Year’s Eve is an insane time. If the Government had any sense, they would delay it for a month. There needs to be a conversation with us about the timing of this. The tax rise is at the worst possible time — right in the middle of the sales period.

:rolleyes:

Share this post


Link to post
Share on other sites

i think they have thought about it. we were discussing this at work today, not a retailer though. going to issue invoices in advance on 31 december at old rate. means HMRC get the money 3 months earlier (grrr) as will go into earlier VAT return but at least we will save our customers the difference in the rates.

Share this post


Link to post
Share on other sites

Whenever it comes in, the increase in the CPI will be explained as a blip caused by the VAT increase, and therefore the MPC will not have to do anything like rise interest rates even if high.

So the M in MPC stands for Muppets, what do the P and the C stand for?

Share this post


Link to post
Share on other sites

This issue came up a few months ago but rather than the retailers its was focused on pubs. How the flying ****** will they all manage it?

Happy New Year! (and by the way I've put up drinks 2%)

Share this post


Link to post
Share on other sites
This issue came up a few months ago but rather than the retailers its was focused on pubs. How the flying ****** will they all manage it?

Happy New Year! (and by the way I've put up drinks 2%)

Don't pubs usually stop serving for 10 minutes? Won't that be enough time to put up the prices?

Or put the prices up in the morning then it won't be an issue and everything before 12 will be extra profit.

Share this post


Link to post
Share on other sites

http://business.timesonline.co.uk/tol/busi...icle6524049.ece

Alistair Darling will reject a request from Britain’s biggest retailers to delay a 2.5 per cent tax rise and is insistent that the economy is weaned off stimulus measures as soon as possible. Value added tax, levied on most goods and services, is due to rise from 15 per cent to 17.5 per cent at midnight on New Year’s Eve. The rise marks the end of a 13-month temporary tax reduction intended to boost consumer demand as the economy sank into recession.

Retailers have said that the timing of the tax rise will cause huge disruption and have urged Mr Darling to delay it by a month. A Treasury insider said that retailers had already had the benefit of the lower VAT rate and that it would cost the Government about £100 million in lost tax if it delayed the rise.

He added that while the Treasury was sympathetic to claims that the timing would mean extra costs for retailers, Mr Darling insists that business and the economy return to an environment where they are not propped up by fiscal stimulus measures and bailouts.

Justin King, chief executive of J Sainsbury, said: “We have been clear it is a bad day to do it, in fact there probably is not a worse day of the year from a retailer’s point of view. It will raise costs, because a lot of work will have to be done on overtime.†He urged the Government to find a more “practical, low-cost†date to raise the rate.

In other words the govt is running out of cash and we need the money. Now pay up.

Share this post


Link to post
Share on other sites

I predict there will be a lot of fuss about this, and Brown will announce a little before hand, maybe 3 weeks before.

That the cut in VAT will remain as its the right thing to do for hard working families at Christmas time.

Share this post


Link to post
Share on other sites
This issue came up a few months ago but rather than the retailers its was focused on pubs. How the flying ****** will they all manage it?

Happy New Year! (and by the way I've put up drinks 2%)

FACT - VAT for pubs remained at 17.5% as it was booze... so effect will be zero...

Unless they put it up to 19% rather than 17.5%...

hmmmm NICE

Share this post


Link to post
Share on other sites

I'd have thought that at a time of price changes (New Year sales) that was the best time to do it. Having to change prices after Christmas then again a month later doesn't sound like a good idea to me.

Share this post


Link to post
Share on other sites
I'd have thought that at a time of price changes (New Year sales) that was the best time to do it. Having to change prices after Christmas then again a month later doesn't sound like a good idea to me.

A few of the large shops (M&S for instance) haven't changed their prices in the store at all. They just re-calulate at the till.

Some shops didn't bother changing their prices anyway just paid lower VAT to the gubmint, which is OK because that is another means of surviving a bit longer.

It's probably all about changing the computer systems at midnight and VI fear that their Jan sales might flop or have reduced margins.

Share this post


Link to post
Share on other sites
FACT - VAT for pubs remained at 17.5% as it was booze... so effect will be zero...

Unless they put it up to 19% rather than 17.5%...

hmmmm NICE

Pubs won't have to make the change until the end of the day apparently!

Pubs to get VAT reprieve

By Ewan Turney

12/06/2009 08:49

Pubs and clubs will be able to delay the change in VAT rate from 15% to 17.5% until 1 January.

Chancellor Alistair Darling reduced VAT in his pre-budget report and the rate was due to return to normal levels at midnight on 31 December.

However, pubs and clubs open late for New Year's Eve celebrations will not have to make the change until the end of that trading session.

Not that pubs will see much of a boost as at the same time as reducing VAT, Darling slapped the trade with a further 8% duty rise to off-set any reduction in price on alcohol.

"The Government, already unpopular with voters, would have faced a riot if drinkers queuing at 11.59pm and not served until 12.02am were to be charged extra, not to mention the logistical nightmare for licensees of having to change tax rates in the middle of what is the biggest party night in the UK," said Terry Dockley, a VAT specialist accountants and business advisers James Cowper.

“It is not often the tax man gives something away for absolutely nothing, but this time it does seem that drinks really are on the Government.â€

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   289 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.