taxman Posted January 4, 2011 Share Posted January 4, 2011 VAT has been put up to 20% today. The Govt hopes to raise an additional £13billion over the next three years. But will it also deter spending? Will you cut back on what you buy or will it not make any difference to you? Do you even know whether the things you buy are subject to VAT or not? Link to comment Share on other sites More sharing options...
Guest Posted January 4, 2011 Share Posted January 4, 2011 I've already cut down the use of my car to evening and weekends as it's cheaper to get the tram, and will be spending a lot more frugally this year anyway. Link to comment Share on other sites More sharing options...
Tess Posted January 4, 2011 Share Posted January 4, 2011 I was thinking about buying a 1.6l car however now will buy a 1.4l, as I cannot afford to keep filling a tank of that size. I doubt ill be able to afford a holiday this year and I am already struggling with affording nights out and with the added VAT on beer I have a feeling I will be out even less than I am right now. I am on a very low wage (although I work full time) and I am really going to have to tighten my belt this year. I have a feeling though that once this deficit has been paid off (or at least a chunk of it) the VAT won't be going back down again. Link to comment Share on other sites More sharing options...
Cyclone Posted January 4, 2011 Share Posted January 4, 2011 No, on most items a 2.5% change won't be that noticeable. Link to comment Share on other sites More sharing options...
DaFoot Posted January 4, 2011 Share Posted January 4, 2011 I doubt ill be able to afford a holiday this year and I am already struggling with affording nights out and with the added VAT on beer I have a feeling I will be out even less than I am right now. Look on the bright side.... think of the holidays you have enjoyed in the past, which is more than many will have done for some time. Link to comment Share on other sites More sharing options...
perplexed Posted January 4, 2011 Share Posted January 4, 2011 It won't alter our spending habits really. We tend not to buy alot of stuff anyway, and what we do buy tends to be things we need, so don't have a choice. Link to comment Share on other sites More sharing options...
Mecky Posted January 4, 2011 Share Posted January 4, 2011 More than likely Link to comment Share on other sites More sharing options...
Funky_Gibbon Posted January 4, 2011 Share Posted January 4, 2011 No, on most items a 2.5% change won't be that noticeable. Lots of small bites still add up. Maybe you won't notice them individual but over the year? And when added to all the other things that are getting more expensive? Link to comment Share on other sites More sharing options...
mj.scuba Posted January 4, 2011 Share Posted January 4, 2011 I think the biggest impact will be on things we have no choice but to spend on, like our water, gas & electricity bills, petrol etc because it's constant spending. We plan to buy some new furniture soon that will cost around £400, VAT rise will only add £10 to it. Link to comment Share on other sites More sharing options...
Tess Posted January 4, 2011 Share Posted January 4, 2011 Look on the bright side.... think of the holidays you have enjoyed in the past, which is more than many will have done for some time. Whilst this is very true, a summer holiday is the only thing I have to look forward to all year. At least I don't have to worry about paying my mortgage, seeing as I can't even afford one of those Link to comment Share on other sites More sharing options...
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