Some Good News Regarding The Vat Increase

[jplevene]

With all the doom and gloom about the VAT rate rise, something to cheer you up.

The two businesses that will be hit the hardest with the VAT rise are Insurance companies and Banks. The reason is that as their services are not VAT applicable so they are not allowed to register to reclaim VAT on purchases like other businesses. This means that there business expenses that are subject to VAT will increase by 2.5%.

This also makes you wonder why the last government lowered the VAT rate to 15% which everyone said wouldn't help the economy, however looking at the above, it did help the banks, along with the bailouts we gave them.

[Pent Up]

With all the doom and gloom about the VAT rate rise, something to cheer you up.

The two businesses that will be hit the hardest with the VAT rise are Insurance companies and Banks. The reason is that as their services are not VAT applicable so they are not allowed to register to reclaim VAT on purchases like other businesses. This means that there business expenses that are subject to VAT will increase by 2.5%.

This also makes you wonder why the last government lowered the VAT rate to 15% which everyone said wouldn't help the economy, however looking at the above, it did help the banks, along with the bailouts we gave them.

Actually its only a 2.14% increase.

[maxdiver]

Actually its only a 2.14% increase.

No - it's hard-working families!

[worzel]

With all the doom and gloom about the VAT rate rise, something to cheer you up.

The two businesses that will be hit the hardest with the VAT rise are Insurance companies and Banks. The reason is that as their services are not VAT applicable so they are not allowed to register to reclaim VAT on purchases like other businesses. This means that there business expenses that are subject to VAT will increase by 2.5%.

This also makes you wonder why the last government lowered the VAT rate to 15% which everyone said wouldn't help the economy, however looking at the above, it did help the banks, along with the bailouts we gave them.

Correct, but their biggest expense is very intelligent innovative people, which don't attract VAT, so I can't see them being too bothered by the increase

[MonkeyNuts]

With all the doom and gloom about the VAT rate rise, something to cheer you up.

The two businesses that will be hit the hardest with the VAT rise are Insurance companies and Banks. The reason is that as their services are not VAT applicable so they are not allowed to register to reclaim VAT on purchases like other businesses. This means that there business expenses that are subject to VAT will increase by 2.5%.

This also makes you wonder why the last government lowered the VAT rate to 15% which everyone said wouldn't help the economy, however looking at the above, it did help the banks, along with the bailouts we gave them.

Good news?

Insurance company and banks will just raise premiums and charges to cover the extra costs.

So we get hit twice, once by the 2.5% VAT increase and again by raised charges.

[@contradevian]

Organisations that can afford to give away £7bn in bonuses are not going to worry about a poxy VAT rise!

[Superted187]

Good news?

Insurance company and banks will just raise premiums and charges to cover the extra costs.

So we get hit twice, once by the 2.5% VAT increase and again by raised charges.

Agree insurance companies have hiked up premiums massively over the last two years, and this VAT increase will just give them a bit of an excuse when explaining to customers why their premium has gone up.

Cocks, total cocks.

[mightytharg]

Correct, but their biggest expense is very intelligent innovative people, which don't attract VAT, so I can't see them being too bothered by the increase

Unfortunately we attract VAT as well as money-hungry chicks. About £37,500 I paid for tthe privilege of pricing a few derivatives in my last contract.

(don't bother thanking me - I have come to accept that you scroungers are never grateful)

[_w_]

With all the doom and gloom about the VAT rate rise, something to cheer you up.

The two businesses that will be hit the hardest with the VAT rise are Insurance companies and Banks. The reason is that as their services are not VAT applicable so they are not allowed to register to reclaim VAT on purchases like other businesses. This means that there business expenses that are subject to VAT will increase by 2.5%.

This also makes you wonder why the last government lowered the VAT rate to 15% which everyone said wouldn't help the economy, however looking at the above, it did help the banks, along with the bailouts we gave them.

The shareholders pay the VAT, the bankers get the same bonuses no matter what.

[Number79]

Good news?

Insurance company and banks will just raise premiums and charges to cover the extra costs.

So we get hit twice, once by the 2.5% VAT increase and again by raised charges.

and in the case of the insurance companies the government are probably counting on this as it will also increase their 7% ipt.