VAT rise - January 2011

[Dan_R]

Excuse my ignorance or if its a stuipid question.

 

Will the rise to 20% VAT in January effect monthly payments such as car finance, mobile phone bill etc?

[Boblet]

It will be on any invoices raised after the date it takes effect (4 January 2011) or on any cash sales from that date.

 

If you are invoiced monthly for a car lease it may go up depending on the original agreement - if it was invoiced in full at the time you took it out then it shouldn't make a difference

 

Your first phone bill after 4 January will be charged at the new rate

[Dan_R]

So if I brought a car via hire purchase (not contract hire) last year, the monthly amount remains the same as it was invoiced in full at the lower rate?

[123456A]

Your original contract will state if VAT is subject to change. It usually is, as the retailer has no control over taxes.

It would have benefitted you if it had gone down........ but you didn't want to know that.

[laineyiow]

Monthly mobile phone bills will be increased to 20%. I've just had notification from my provider.

[rossyrooney]

Sky are putting prices up in Jan.to reflect the new rate.

[Boblet]

So if I brought a car via hire purchase (not contract hire) last year, the monthly amount remains the same as it was invoiced in full at the lower rate?

 

Generally a hire purchase agreement is a loan repayment - the amount you are paying is for the purchase price of the car plus interest - you will normally be paying a finance company, not the garage or dealer which sold you the car

 

The sale in this case will have been completed when the HP company paid the car dealer so there should be no increase in your payments