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VAT - reduction
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By *illowz OP Woman
over a year ago
Exeter |
I'm a finance administrator, and my manager was saying today she thinks VAT will be reduced to 15% as it was when the financial crisis hit in 2008.
Anyone have any thoughts /opinions on this |
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"I'm a finance administrator, and my manager was saying today she thinks VAT will be reduced to 15% as it was when the financial crisis hit in 2008.
Anyone have any thoughts /opinions on this "
It's about time it came back from 20% and it's a European Union TAX anyway. Drop it completely I say. Give people more spending power and it's its own form of Economic Easing.
Either that or go Modern and just Print more money. |
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"I'm a finance administrator, and my manager was saying today she thinks VAT will be reduced to 15% as it was when the financial crisis hit in 2008.
Anyone have any thoughts /opinions on this "
May as well, fiscal discipline left the building a long time ago. |
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The way forward is yet another lurch to the left with introduction of financial transaction tax on the city and complete crackdown on large multinational corporations like Amazon, Apple and Google.
FTT once recovery underway willLead to massive income to the treasury,it may even be used instead of VAT as a sales tax on every item. |
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"The way forward is yet another lurch to the left with introduction of financial transaction tax on the city and complete crackdown on large multinational corporations like Amazon, Apple and Google.
FTT once recovery underway willLead to massive income to the treasury,it may even be used instead of VAT as a sales tax on every item."
Yet another lurch to the left? |
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"The way forward is yet another lurch to the left with introduction of financial transaction tax on the city and complete crackdown on large multinational corporations like Amazon, Apple and Google.
FTT once recovery underway willLead to massive income to the treasury,it may even be used instead of VAT as a sales tax on every item.
Yet another lurch to the left?"
Left= Back Right=Forward.
But I see what you did there.
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"I'm a finance administrator, and my manager was saying today she thinks VAT will be reduced to 15% as it was when the financial crisis hit in 2008.
Anyone have any thoughts /opinions on this "
Temporary 5% reduction to boost consumer spending |
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By *eroy1000Man
over a year ago
milton keynes |
"I'm a finance administrator, and my manager was saying today she thinks VAT will be reduced to 15% as it was when the financial crisis hit in 2008.
Anyone have any thoughts /opinions on this
It's about time it came back from 20% and it's a European Union TAX anyway. Drop it completely I say. Give people more spending power and it's its own form of Economic Easing.
Either that or go Modern and just Print more money."
If a EU tax can it be reduced while still in transition period. Or is it a case of can be reduced within certain limits |
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"I'm a finance administrator, and my manager was saying today she thinks VAT will be reduced to 15% as it was when the financial crisis hit in 2008.
Anyone have any thoughts /opinions on this
It's about time it came back from 20% and it's a European Union TAX anyway. Drop it completely I say. Give people more spending power and it's its own form of Economic Easing.
Either that or go Modern and just Print more money.
If a EU tax can it be reduced while still in transition period. Or is it a case of can be reduced within certain limits"
We are out of the EU. |
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By (user no longer on site)
over a year ago
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I thought VAT is just another name for a similar tax which existed before joining the EU and came in effect after WW2... nothing to do with politics just tax and economics, |
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I think it's a valuable way to help to stimulate the economy and especially to help individual citizens. As a tax, it disproportionately taxes those who are less well off. With likely downturns to spending due to employment, it's an equitable move to support those who deserve it.
I'm guessing that the government will not want to return to the former lowest level, as this could reinforce the concept of this being the correct duty level. I'd seen the 17% amount being discussed too. As savings currently return next to nothing, wages are just about at 2008 levels, a few percentage points difference on spending power would be a great contrast. |
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By (user no longer on site)
over a year ago
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They might do, there has been talk of a basic income being handed out to everyone. Unlikely to go down that route but have to do something to stimulate the economy so a reduction on income tax could be on. |
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By *yn drwgMan
over a year ago
Camarthen |
"I'm a finance administrator, and my manager was saying today she thinks VAT will be reduced to 15% as it was when the financial crisis hit in 2008.
Anyone have any thoughts /opinions on this "
VAT was @ 17.5% before it went up to 20% |
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By *yn drwgMan
over a year ago
Camarthen |
"Doesn't mean all things will be 5‰ cheaper. Some brands may just make higher margin. Also some items we buy are Vat free. "
Very little is vat free! Some things are advertised as zero vat but any company that is vat registered has to charge vat on all products it may be different rates depending on different products. |
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This current crop of corruption fuelled selfservatives have been drifting to the left ever since covid19 started.
Check labour manifesto see how many policies have been robbed, such as laptops for poorest along with WI-FI
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By *ostafunMan
over a year ago
near ipswich |
"It was called purchase tax which was introduced in 1940 and only changed it name in 1973
But as with most things it's easier for some to blame the eu..
Hey ho.. "
Well of course Boris has already said he will do away with vat on sanitary products (tampon tax) as soon as we out of the transition period but cant until then. |
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By *mmabluTV/TS
over a year ago
upton wirral |
"I'm a finance administrator, and my manager was saying today she thinks VAT will be reduced to 15% as it was when the financial crisis hit in 2008.
Anyone have any thoughts /opinions on this "
No this is not a good idea we must all be prepared for small tax rises in the coming year |
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By *mmabluTV/TS
over a year ago
upton wirral |
"This current crop of corruption fuelled selfservatives have been drifting to the left ever since covid19 started.
Check labour manifesto see how many policies have been robbed, such as laptops for poorest along with WI-FI
"
Manifestos are out the window and are irrevilent due to this unforseen crisis.This is not a time to come up with petty party points |
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By *eroy1000Man
over a year ago
milton keynes |
"I'm a finance administrator, and my manager was saying today she thinks VAT will be reduced to 15% as it was when the financial crisis hit in 2008.
Anyone have any thoughts /opinions on this
It's about time it came back from 20% and it's a European Union TAX anyway. Drop it completely I say. Give people more spending power and it's its own form of Economic Easing.
Either that or go Modern and just Print more money.
If a EU tax can it be reduced while still in transition period. Or is it a case of can be reduced within certain limits
We are out of the EU. "
We are out of the EU but in a transition period where we have to follow all the rules. The EU does not allow any member state to reduce there vat below 15
percent. The 5 percent vat you pay on your fuel bills is also forbidden to be reduced by the EU rules. While still in transition we have to stick to the rules. After that its up to the government of the day/ details in possible trade arrangement |
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"I'm a finance administrator, and my manager was saying today she thinks VAT will be reduced to 15% as it was when the financial crisis hit in 2008.
Anyone have any thoughts /opinions on this
VAT was @ 17.5% before it went up to 20%"
It was, it then got lowered because of the credit crunch then put upto 20% to claw back what they lost from lowering it. Funny that it didn't get lowered back to 17.5%.  |
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"
Anyone have any thoughts /opinions on this
VAT was @ 17.5% before it went up to 20%
It was, it then got lowered because of the credit crunch then put upto 20% to claw back what they lost from lowering it. Funny that it didn't get lowered back to 17.5%. "
But 1/6 is so much easier to calculate than 7/47!
If they do drop to 15% to encourage spending, it would only be for an interim period. Before being put back to 20% to start to recoup the massive defect we're in. |
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By *arksxMan
over a year ago
Leicester / London |
A vat reduction is how to kick start an economy 101
That said... This government is run by arseholes and mps who are inept in their cabinet positions. So your mates guess is a good as anyone's
Just don't expect it to stick around. |
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"
Anyone have any thoughts /opinions on this
VAT was @ 17.5% before it went up to 20%
It was, it then got lowered because of the credit crunch then put upto 20% to claw back what they lost from lowering it. Funny that it didn't get lowered back to 17.5%.
But 1/6 is so much easier to calculate than 7/47!
If they do drop to 15% to encourage spending, it would only be for an interim period. Before being put back to 20% to start to recoup the massive defect we're in."
Not really my point tho is it!!!! |
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By (user no longer on site)
over a year ago
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I think it should stay the present 20% for online sales. But if there is going to be a reduction to say 10% ...I think it should be on the high street to give it a much needed boost. |
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"The way forward is yet another lurch to the left with introduction of financial transaction tax on the city and complete crackdown on large multinational corporations like Amazon, Apple and Google.
FTT once recovery underway willLead to massive income to the treasury,it may even be used instead of VAT as a sales tax on every item."
Totally agree |
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"Doesn't mean all things will be 5‰ cheaper. Some brands may just make higher margin. Also some items we buy are Vat free.
Very little is vat free! Some things are advertised as zero vat but any company that is vat registered has to charge vat on all products it may be different rates depending on different products."
No you only charge VAT on vatable products even if you are VAT registered. |
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There is another 'more modern' way . . . that has been growing in monetary policy aroiund the World for the last ten years:
https://www.ft.com/content/fd1d35c4-7804-11ea-9840-1b8019d9a987
(^^^this may not work if you don't subscribe but is a more thorough analysis)
or
https://www.independent.co.uk/voices/coronavirus-bank-of-england-treasury-economic-crisis-ways-means-a9462281.html
 |
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By (user no longer on site)
over a year ago
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"I think it should stay the present 20% for online sales. But if there is going to be a reduction to say 10% ...I think it should be on the high street to give it a much needed boost."
Excellent idea
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By *ebbie69Couple
over a year ago
milton keynes |
"I can see a 3 to 6 month VAT reduction for certain sectors, such as hospitality.
Gives an immediate price cut to kickstart the economy.
Rishi Sunak is making announcements next week. "
That does seem likely though room for manoeuvre is restricted by the EU for the time being unless they change the rules |
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By *arksxMan
over a year ago
Leicester / London |
"and . . .
https://en.wikipedia.org/wiki/Modern_Monetary_Theory
"
Mmt is cute intellectual theory but let's be real...
Economist dont run economies they write about them.
Powell has already committed to bending over to any order from trump and making the money printer go brrrrrr.
And he literally confirmed the fed will QE any amount of money required to get out of the pandemic.
They are not just saying banks are to big to fail this time...its the whole stock market.
That's doesn't make mmmt any less interesting as a theory though. |
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By *yn drwgMan
over a year ago
Camarthen |
"Doesn't mean all things will be 5‰ cheaper. Some brands may just make higher margin. Also some items we buy are Vat free.
Very little is vat free! Some things are advertised as zero vat but any company that is vat registered has to charge vat on all products it may be different rates depending on different products.
No you only charge VAT on vatable products even if you are VAT registered. "
I get your point but all labour has to be charged with vat, haulage for every product is charged with vat so the vat is in there but not shown to be charged, no disguising it unfortunately. |
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"Doesn't mean all things will be 5‰ cheaper. Some brands may just make higher margin. Also some items we buy are Vat free.
Very little is vat free! Some things are advertised as zero vat but any company that is vat registered has to charge vat on all products it may be different rates depending on different products.
No you only charge VAT on vatable products even if you are VAT registered.
I get your point but all labour has to be charged with vat, haulage for every product is charged with vat so the vat is in there but not shown to be charged, no disguising it unfortunately."
Only if you're over the threshold and are VAT registered would your services be charged with VAT on top... I use a local mechanic who doesn't charge VAT - saves me money and he's happy in his semi-retired ways. |
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"and . . .
https://en.wikipedia.org/wiki/Modern_Monetary_Theory
Mmt is cute intellectual theory but let's be real...
Economist dont run economies they write about them.
Powell has already committed to bending over to any order from trump and making the money printer go brrrrrr.
And he literally confirmed the fed will QE any amount of money required to get out of the pandemic.
They are not just saying banks are to big to fail this time...its the whole stock market.
That's doesn't make mmmt any less interesting as a theory though."
Really? Quantitative easing 'is' MMT. And has been used since the 2008 sub prime loans crash !!! It's not theory. It's practice.
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By *yn drwgMan
over a year ago
Camarthen |
"Doesn't mean all things will be 5‰ cheaper. Some brands may just make higher margin. Also some items we buy are Vat free.
Very little is vat free! Some things are advertised as zero vat but any company that is vat registered has to charge vat on all products it may be different rates depending on different products.
No you only charge VAT on vatable products even if you are VAT registered.
I get your point but all labour has to be charged with vat, haulage for every product is charged with vat so the vat is in there but not shown to be charged, no disguising it unfortunately.
Only if you're over the threshold and are VAT registered would your services be charged with VAT on top... I use a local mechanic who doesn't charge VAT - saves me money and he's happy in his semi-retired ways. "
He may not charge vat on his labour if he is not registered but all your parts will be even though he doesn't charge vat it will be included in the price, no way around it. |
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By *yn drwgMan
over a year ago
Camarthen |
"Doesn't mean all things will be 5‰ cheaper. Some brands may just make higher margin. Also some items we buy are Vat free.
Very little is vat free! Some things are advertised as zero vat but any company that is vat registered has to charge vat on all products it may be different rates depending on different products.
No you only charge VAT on vatable products even if you are VAT registered.
I get your point but all labour has to be charged with vat, haulage for every product is charged with vat so the vat is in there but not shown to be charged, no disguising it unfortunately.
Only if you're over the threshold and are VAT registered would your services be charged with VAT on top... I use a local mechanic who doesn't charge VAT - saves me money and he's happy in his semi-retired ways.
He may not charge vat on his labour if he is not registered but all your parts will be even though he doesn't charge vat it will be included in the price, no way around it."
What I'm trying to say is all goods, clothes, furniture,food whatever the vat will be included in the price there's no way of avoiding it. |
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By *ebbie69Couple
over a year ago
milton keynes |
"and . . .
https://en.wikipedia.org/wiki/Modern_Monetary_Theory
Mmt is cute intellectual theory but let's be real...
Economist dont run economies they write about them.
Powell has already committed to bending over to any order from trump and making the money printer go brrrrrr.
And he literally confirmed the fed will QE any amount of money required to get out of the pandemic.
They are not just saying banks are to big to fail this time...its the whole stock market.
That's doesn't make mmmt any less interesting as a theory though.
Really? Quantitative easing 'is' MMT. And has been used since the 2008 sub prime loans crash !!! It's not theory. It's practice.
"
Very true its a common thing. The EU use it massively as well |
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By *arksxMan
over a year ago
Leicester / London |
"Doesn't mean all things will be 5‰ cheaper. Some brands may just make higher margin. Also some items we buy are Vat free.
Very little is vat free! Some things are advertised as zero vat but any company that is vat registered has to charge vat on all products it may be different rates depending on different products.
No you only charge VAT on vatable products even if you are VAT registered.
I get your point but all labour has to be charged with vat, haulage for every product is charged with vat so the vat is in there but not shown to be charged, no disguising it unfortunately.
Only if you're over the threshold and are VAT registered would your services be charged with VAT on top... I use a local mechanic who doesn't charge VAT - saves me money and he's happy in his semi-retired ways.
He may not charge vat on his labour if he is not registered but all your parts will be even though he doesn't charge vat it will be included in the price, no way around it."
We falls under alot of theories
I suppose this all depends how far you pull into which theory...I think you would agree
most economists are more rational than most and as a result usually more non partisan when it comes to theory or at least far right and left views on it.
I dont discount your opinion or the theory.
Maly comments where more in line of the...there is no economic theory being observed.
It's all wing it and see what happens.
Trumps analysis of an economy seems to be stock market up...all good.
I refer you the renowned economist...mr James brown and funky president.
Stock market going up
Jobs going down
And ain't no funking
Jobs to be found
Taxes keep going up
I changed from a glass
Now I drink out of a paper cup
It's getting bad
Seems to be as good analysis as your gonna get from the fed hahaha
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